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HomeMy WebLinkAbout01-24301 ~ 1 k ~ ~ t PATRICIA A. SHANKLE and IN THE COURT OF COMMON PLEAS OF GERALD C. SHANKLE, JR., :CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs CIVIL ACTION -LAW vs. N0. 2001- o~~~d CIVIL TERM NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, : INC., IN ASSUMPSIT Defendant :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 (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 OR CANNOT AFFORD ONE, GO TO OR SAIDIS SHUFF, TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN & LINDSAY ATrORNEYS•AT•UW ~6 w. Sigh street GET LEGAL HELP. Carlisle, PA CUMBERLAND COUNTY BAR ASSOCIATION 2 LIBERTY AVENUE CARLISLE, PA 17013 ~117~ 249-3166 I ~ j ~ t ~ ~ ~ + PATRICIA A. SHANKL ~ E and . ERALD C. SHANKLE ~ IN THE COURT OF C JR., C OMMON PLEgS OF ' UMBERLAND COUN Plaintiffs ~ PENNSYLVANIA : CIVIL ACTION - L,qy~ vs. N0. 2 001 ~2 yob NORTHEAST CIVIL TERM ERN HOME ' IMPROVEMENTS OF HARRISBURG, ; INC., IN ASSUMpSIT Defendant :JURY TRIAL DEMANDED COMp~AINT NOW COMES Patr' ' icia A. Shankle and G erald C. Shankle Jr. t ~ , by and hrough their attorn eys, SAIDIS, SNUFF F LOWER & LINDS AY, and states as follows: 1 • Plaintiffs are ~ • ' adult individuals who ' reside at 1915 Lenox S treet, Camp Hill, Cumberland Co unty, Pennsylvania. 2~ Defendant is a Pennsylvania Cor ' poration, with a rinci a p plplaceof business at 125 En ola Drive, Suite 106 Enola, Penns Ivani Y a. 3• On or about May 24, 1999 the ' parties hereto entered ' into a certain written contract for the • construction of two additio ns to Plaintiffs' residenc • e, comprised of a second sto ad ' ' rY dition and an additio n to the back of Plainti ffs residence. A co of the A reem pY SAIDIS 9 ent is attached heret ~o~ o as Exhibit "A". & LINDSAY ?„~R„~,~,~T,~ 4. The contract ' w price was $69,437.00. 6 W. High Street Carlisle, PA 5 At t he time of the mak' ing of the contract, Plainti fFs advised Defends ' agent an nts d Defendant knew that the prima ry purpose of the additio ns was to accommodate Plaintiff Patr' ' icia A. Shankle's elder) Y parents who were movi ' ng into I 1 ~ 1 ~ f ~ Plaintiffs' residen ce, and m particular to accommodate Patricia A. Shankle's fath who uses a wheel er chair. 6. pn Ma 6 Y , 1999, Defendant' s agents, Mark Kerlin a ad ' nd ramie Walsh vised Plaintiffs that th ' e additions contracte d for would be co mpleted by Labor D 1999. aY~ 7• Althou h t g he work on the contract was to com mence "ASAp~~ b the contract terms w Y ork did not comme nce until November 15 1999. Further d continued an elays d by April 2000 a fter numerous wa ' rn~ngs, Plaintiffs advise that d Defendant they considered p efendant to have b reached the contract. 8. Prior to A . pril 2000, Plaintiffs had paid to Def endant, pursuant to terms o f the the original contract t hirty-five 35% ~ ~ percent of the contract ' $24,290.00. pace, 9• In order to ' avoid I~tigat~on, the a . p roes entered into a Workout A reem on Au ust 1 9 ent 9 8, 2000, a co of pY which is attached h ereto as Exhibit "B", 1 Para ra h 9 p 2 of the Work out Agreement call ed for Defendant recommence w to ork on August 21 2000, and Para r g aph 6 of the Worko called ut Agreement SAIDIS for completion "o UHF nor before the 45~ c FLOWER alendar day follow' . ~ LINDSAY ing the date of this Agreement. If No YS~AT~L~yy rtheastern fails to complete the pro'ect w. High Street J within the fort -five Carlisle, pq penod r Y (45) day p ovided for herein Sh ankles shall be entit led to $1, 000.00 damn per day as delay ges, beginning with the _ ~ n, forty sixth (46 d . ay, until the ro' ' p sect is complete." I i ~ f ~ I ~ ~ f ~ 11~ Para rah 9 p 14 of the Worko ut Agreement calle d for the parties t their own attome ~ ° pay Ys fees and costs wi ~ . th this exce ton: " p However, if ~t is d . etermined by a panel of arbitrators ' ' a ~urY °r a judge that a pa~Y has breached ' A r this Workout g Bement, the breachin g party shall be ordere d to pay the othe . r parties reasonable attorney's fees incu rred to enforce the W orkout Agreement." 12. Inco orate ' rp d into the Worko ut Agreement was an Escrow ggreeme according to w ~ nt, hich the parties agreed to escrow the balance owed to ~ . accordin Plaintiff 9 to the terms of th e contract, and to a p y $35,147.00 u o . p n issuance of an occupancy permit b Y Camp Hill Boro ugh, leaven $10 . g ,000.00 m escr completion of ow upon the project. The o ccupancy permit was iss Ued on Qctober 3 2 $35,147. ~ 000 and 00 was paid out of escrow to Plaintiff accor ' Jingly. 13• Defendant has not fulfilled t he provisions of the Workout A re . many antic 9 ement in p ulars Set out on E ~ ~ „ xhibit B ,attache d hereto, and inc . orporated here1n, In particular, Defendant has failed or refu sed to comply with P aragraph 9 which cal for the new addi ' Is ton to be level and match with the existin g home so that a enter and exit person can the addition from t he original hoUSe ' ~n a wheelchair without ' assistance. SAIDIS 14. Defendant has performed t UFF, FLOWER he contract in ~ LINDSAY a poor, improper or u workmanlike manner n ~~1'S•AT•LAW asset forth on Exhibit "C" ~ W. High Street ' Carlisle, PA 15. Des ' pate reasonable ext ensions o f time b the p ' . Y la~ntiffs, Defenda failed or refused nt has to cure the aforesai d breaches of the Workout A reeme 9 nt. I ~ ~ f ~ s ~ r ~ 16. The reasonab le costs actual) inc Y urred or to be incurred ~ ' by the Plamtif fs in remedying the breaches described are in exc ess of $25,000.00, the s tatutory limit for mandato arbitr ' ry anon, and include a ttorneys fees reason ' ably incurred to enfo the terms rce of the UVorkout A r g Bement, penalties for del ay the costs to com le . p to the project and the costs to re medy poor, impro er o - p ~ r un workmanlike con struction. WHEREFORE Plai ntiffs pray this Honor able Court to enter ' judgment against Defendant and for ~ ' Plaintiffs in an am . ount in excess of $25 ,000.00 with costs interes and t. SAIDIS, SHUFF, FLO WER & LINDSAY P.C Attorneys for Plain ' ' tiff . l . By~ , . Ca of J. Lin ~ ~ ' dsay Esquire I D 44693 West High reet Carlisle, PA 17013 (717) 243-6222 SAIDIS HUFF, FLp~VFR & LINDSAY AT~'~R~:YS•AT•LAW t6 W. High Street Carlisle, pA I ~ ~ r t I ~ ~ ~ ~ VERIFICATION I, the undersigned, hereb veri that th Y fY a statements made herein are true and correct. I understand that false statements h ' erein are made subject to the penalties of 18 Pa. C.S. § 4904, relatin to unsw g orn falsification to authorities. r ~ w Patricia . Sl~nkle~ r / f+'f; 1 . ~ G~ ald C. Sh nkle, Jr. . I ~ 0 I Date. SAIDIS SNUFF, FLOWER & LINDSAY ~~o~rs•~T•r~w Z6 W. High Street Carlisle, PA I APR 1 9 2001 i , t ~ J1 i 1 , ~ > > ~ ~ tit ~ ~ f ~ . ~ ~ ~ ~ ~ ~ ,.:r , ~ ~ ~ ~ . / ~1 ® J ~ j. MEMBER STERN ~ j J> > i~ ~ ~ J 1 ~ j PENNSYLYI~NIA ~ ~ ~ A~coA BIIREI~11 125 North Enola S treet Suite 106 Enola, PA 17025 717 - ( ) 732 3600 TO . -.~L Job No. Date _ The un hone# ,~ZZ _ ~ f ders~gned, hereinafter call the Contragor ~ ' Improvements described herein, accords ~ propose to furnish all materials rig to the follows s , , and labor to install . rig pecifications, orYin butlding located et abov ' constn~ct and place the ~ ~ 08TAIN All APPROPRIATE PERMIT a address. SAND INSURANCES, ~ ~ l 3 _ ~ ~ ~ ~ 1r .P / ~ ~ j ~ l vrX~ M i ~ f . ~ ~ W ~U{~, 1 S < ~ I ff ~ / f, ~ r' , Y ~ G ~ ! G ~ ! ~ I • i ~4 ~ , w k'~~~ . Puce ~ y- ' / f I~ ~ s ' ~ - y ~ ~ Less Discount ou 3 • ~ s " TOTAL ~ ~ ~ ? ~ DO NOT D0: ~ DIP Received ~~G 7~v . ~ BALANCE 4W f~ ° u ED - ~ ~ Co ~ ~rc+ow. ~ Bal, to be finance ~ I ~ ~rS a~vv~ ~ d The ~ 4 ~ 6 , Contragor shall be permuted iti ' to proceed with thi CTv C~k ~ ~ the Contragor, wig, sub' s work on or about h ~'rF ~ lect to unforeseen vontingenc(es, cortuner~ work on ~ ~ ~ and u a or about said date. Payment of the abov ~ ~Ptance by you and ~ e work to be made as follows: Cash upon Gomple~• ' a . This agreement shall become bind. ~ v . ~n9 ply upon written acceptance by the Contractor sub aaeptan~ or canmenoement of performance ~ or upon the contractor commencing performance and covenants, this shah constitute the entire contraq and be bin ' + promises, warranties or agreements, written or oral din u upon Contragor has authority to alter the to ~ expressed or implied. Exce t as g ~ ~ parts hereto, there bein rms of this agreement in any particular. It is further a rep herein set forth. No Sales Represenlativ g no ~ (A) ANY alteration or deviation from above s ' g ed that: a of the i extra age over and above the original agreemen ~s ~v~~ eta °DSts, wiU be executed 1~) The Contragor shah not be res only ~ written orders, and will become an control, including, but not limited to, a~peod+'~sible for damage, delay or defat~t where occasi production facilities or transeerfal:~~. Conflict ore tined by any cases or env kind a,~e.,a _ conomiC dlSkxation ra~„~~~.,.. •~'•~1aw'j'F umicultiss; civil disorders of an i --avolu ue °na its 31 an Y tires, floods and accidents. The Contractor any kind action of i civil or embargoes; shortages of labor, raw materials, carries W m lrtary authorities Y aracter under this contract other than covered b s urkman's Compensation and Public Uabili (including priorities and (C) The proposal is limited to by insurance, h insurance, but does not assume risks (D) The Purchaser is dealing with the C tract days acceptance from date hereof. mY person, firm or corporation or as principal and that the Contractor is not acting hereunder as the agent or representative of E) Deposits are non-refundable, if cash deal and/or tm ' andng is obtained. ~ ACC - x 19 _Z4 x Signature Signature )11l I I ~C)~~)1~~)~; Deposit / Amount J 0 CASH U CHECK # _ RBPT"ntative .e=.yr„ ~;yg 3~.. 1 1 ~ I ~ I ~ ` f r f workout A re Thi meat s Agreement ma between Np de this ~ RT~STERN H day of Pe~sYZvania OME IMPROVE August, 200 1 corPoratio ~ MEN'I'S OF 0' by and 25 North E n, with It ~ KARRISBURG nOla Drive, S s Princi al INC. , a (hereinafte uite 106 ~ of flCe to r referred to Enola Penn sated at S~~E, JR . as "North Sylvania , and pATRICIA eastern„) and lrsdlviduals A• S GERAL residin HANKIE, his D C. Pe~sylvania g at 191S Leno wife, adult (hereinafte x Street, Ca r referred to mp Hi11, y~HER as Shankl eS„ EAS , on or ) . agreed u about Ma 24 Pon and cont Y 1999 Nor various im ratted to et theastern a provements g her to hav nd Shankle dwelling to and struCtur a N°rtheaste s ca t ed a t 191 aI addi t i o rn per form COUntY, Penn 5 Lenox Str ns to the Sh Sylvania ~ eet , Camp Hi ankles , 11, Cur~erl and ~EREAS~ the performed b materials Were Y Northeaster to be su 1. o $69,437.Op. n In exChan I PP 1ed and the ge for a abor payment by Sha nkles WHEREAS Nor than an thedstern be Y °f the parti gars work on s ~ , es antlCi ate aid pr07eCt m P d% uch later ~EREAS~ num Northeaste er°us other di rn and Sha fferenCeS h ShankleS a nkles, such ave arisen lleged that that in th between Northeastern the COntrac a spring of 2 from doin t was breach 000, g any further ed and Prohi work on th tilted WHEREAS, Nor a PrO~ ect; an differ theastern a d enCes be res nd Shankles the olved and t desire that Project, hat Northe their astern pro tl ~ Y complete NOW THEREFOR corssi~~ E, intersdin ration of the g to be legall here1n, the mutual prom Y bound here part1es he lSeS and co by and in reto agree as versants contai follows; ned 1) Shankle s shall Permit subCOntracto NOrtheaster rs, to return n' its emplo e reCOmmence wor to the 'ob Y es and on k and Nort ~ site and Monday, Au heastern s gust 21, 20 hall reCOmme 0 0 , nCe work 2) Northea stern acknowle $24,290.00 dges the r. from ghankle P for reCei t o contract s which has P f Price for the been a 1, said Pro~ec Pp led to the t. u. ..fit ,s~~! r '.~Ya' v~ { ~ ~~~J'' ::'.s ?eg~.3. . r .1~ 1 l t J 3) Shankles have, contemporaneously with the execution of this agreement, placed the sum of $45,147.00 in escrow with Carol J. Lindsay, Esquire and Gregory R. Reed, Esquire, to be paid to Northeastern upon the completion of this project, in accordance with the Escrow Agreement, a copy of which is attached hereto, marked Exhibit "1' and incorporated herein by reference as though fully set forth herein. 4) Northeastern has, contemporaneously with the execution of this agreement, and as consideration for this agreement, marked the mechanic's lien claim filed on or about May 11, 2000 to a number 2948 of 2000 in the Prothonotary's office of the Cumberland County Courthouse, "settled, satisfied and discontinued., 5) Northeastern shall, contemporaneously herewith and as consideration for this agreement, file in the Prothonotary's office of the Cumberland County Courthouse, a Stipulation against Mechanic's Lien signed by itself as the general contractor for all work to be done subsequent to the date of this agreement. Furthermore, Northeastern shall file with the Prothonotary of Cumberland County a Release of Liens signed by it and all other independent contractors, subcontractors and material men, (except Rick Long and Tim Wentzel) of all mechanics liens past, present and future. The Release of Liens shall be filed within five (5) days of the date of this Agreement. Northeastern shall indemnify and hold the Shankles harmless against all claims by any independent contractor, subcontractor, or material men and from any attorney's costs incurred to defend such claims. By August 23, 2000, Northeastern shall provide to Shankles proof that it paid Rick Long and Tim Wentzel for their work on the Shankles' property. 6) Northeastern will complete the project on or before the forty-fifth (45th) calendar day following the date of this Agreement. If Northeastern fails to complete the project within the forty-five (45) day period provided for herein, Shankles shall be entitled to $1,000.00 per day as delay damages, beginning with the forty-sixth (46`h) day, until the project is complete. - 2 - 7) Northeastern will work diligently to complete the project on a Monday through Friday basis, although the very nature of the project may involve lulls in the work to allow spackling compound to "set up" or for other similar reasons. 8) Northeastern shall complete the project in accordance with the specifications set forth in the original contract, a copy of which is attached hereto, marked Exhibit "2" and incorporated herein by reference. 9) In addition, Northeastern's work shall include the following: a) Reinstallation of a waterline in the rear of the house which was removed during construction; b) The caulking and flashing around the chimney will be completed and/or repaired as well as the entire offset around the second floor addition shall be made watertight; c) The soffit to be installed on the front porch ceiling shall be almond in color; d) A front porch with a marquis roof with shingles to match. The porch itself will include ballasters, tongue and groove flooring, a finished porch ceiling and all overhangs of the front porch roof in vinyl with almond color. Furthermore, Northeastern will remove portions of the pad installed so that the porch floor does not extend beyond its roof. e) All downspouts installed by Northeastern shall comply with and conform to the water run-off plan submitted to the Camp Hill Borough; f) Installation of steps, which shall be at least as wide as the back doorway, in the rear of the house so that occupants can enter and exit in the rear of the house; g) The front door to the home shall be made wheel chair accessible; h) Grade and seed those portions of the front and rear yard which were disturbed or disrupted as a result of the project; i) No hot and/or cold water lines in the addition will touch each other; - 3 - j) The new addition shall be level and match with the existing home so that a person can enter and exit the addition from the original house in a wheelchair without assistance. k) The design of the kitchen layout is attached as Exhibit "3°. Northeastern shall install two recessed lighting fixtures, one over the sink and one over the bar. The existing lighting fixture in the present kitchen shall remain. Northeastern shall install a fixture of mid-range quality to be selected by Shankles over the eating area. Electrical outlets shall be pursuant to Building Code. Northeastern shall provide wiring, the floor coverings for the kitchen as set out on Exhibit "7" attached hereto. Cabinets will be in accordance with the plan attached as Exhibit "30. Northeastern shall provide necessary plumbing so that sink and appliances are in good working order. 1) A design of the support posts for the installation of the laminated beams between the existing kitchen and the new addition is attached hereto, marked Exhibit 44" and incorporated herein by reference as though fully set forth herein. m) Before new flooring is laid, recheck the floors in the addition and re-nail, where necessary, to help prevent squeaking and loose joints. n) Check ceiling and wall plates where ducts were cut in order to guarantee straightness. o) The drawings and plans for the master bath are attached hereto, marked Exhibit 45" and incorporated herein by reference as though fully set forth herein. p) All construction, including but not limited to, electrical wiring, which shall be upgraded to 200 AMP service, and plumbing, shall be in compliance with local building codes and meet the approval of the local municipal building inspector. q) All windows installed in the addition shall be in compliance with the applicable local building codes. r) All damaged window screens shall be replaced. s) The front door screen and frame shall be replaced. t) Any holes in the living room and two bedroom ceilings shall be repaired and repaired with similar paint but Northeastern shall not be required to repaint the entire ceiling. - 4 - u) The door handle and screens shall be installed on the new French patio doors and keys supplied. v) Runoff from cement work shall be removed from the siding and brickwork of the house. w) Basement stairway recessed light to be replaced. x) Siding loosened as a result of work done by Northeastern shall be reattached. y) Fascia damaged by Northeastern's workmen shall be replaced. 10) Northeastern shall perform work in accordance with a schedule mutually agreed upon by the parties after the inspection referred to in paragraph 1 hereof. 11) All allowances for fixtures, bathrooms, bedrooms and second floor hallway are set forth in Exhibit "6", attached hereto and incorporated herein by reference as though fully set forth herein. 12) Although Shankles may, at their cost, hire a contractor to inspect Northeastern's work, said contractor shall not harass or interfere with Northeastern's employees and subcontractors or otherwise interfere with their work nor shall Northeastern's workmen harass or interfere with the contractor that Shankles hire. 13) Neither Northeastern nor Shankles shall threaten or attempt to influence any building inspector but shall accept his or her determinations and findings and honor them. 14) Northeastern shall be solely responsible for its legal fees and costs and Shankles shall be solely responsible for their legal fees and costs, as well as the costs of any contractor other than Northeastern. However, if it is determined by a panel of arbitrators, a jury or a judge that a party has breached this Workout Agreement, the breaching party shall be ordered to pay the other parties reasonable attorney's fees incurred to enforce the Workout Agreement. 15) This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of - 5 - Pennsylvania, including its without regard to its rules law. statutes of limitation but concerning conflicts of 16) Any invalidity, in whole or in part, of any provision of this Agreement shall not affect the validity or enforceability of any other of its provisions. 17) This Agreement shall be binding on and shall inure to the benefit of the parties hereto, their successors, heirs and assigns. 18) The headings contained in this Agreement are for convenience of reference only and shall not control the interpretation of any term or condition hereof. 19) The recitals appearing before Paragraph 1 of this Agreement constitute a material part of this Agreement and are expressly incorporated herein by reference. 20) The enforcement provision of the promissory note of June 14, 1999 are null and void to the extent that they call for the payment of attorney's fees. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written. Attest: - 6 - Mark Kerlin, President of Northeastern Home Improvements of Harrisburg, Inc. b ..? Gerald C. Shankl Jr. P tricia A. Shankle et'S `? Witness THIS ESCROW AGREEMENT (the "Escrow Agreement") is made this ?o day of August, 2000, by, between and among NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., a Pennsylvania corporation, with its principal office located at 125 North Enola Drive, Suite 106, Enola, Pennsylvania (hereinafter referred to as "Northeastern") and GERALD C. SHANKLE, JR., and PATRICIA A. SHANKLE, his wife, adult individuals residing at 1915 Lenox Street, Camp Hill, Pennsylvania (hereinafter referred to as "Shankles") and CAROL J. LINDSAY, ESQUIRE and GREGORY R. REED, ESQUIRE, (hereinafter referred to as "Escrow Agents"). WHEREAS, Northeastern and Shankles entered into a Workout Agreement dated August 18, 2000, pursuant to which Northeastern has agreed to complete an addition and remodeling project at the residence of Shankles; and WHEREAS, Shankles have agreed to place the sum of Forty- five Thousand One Hundred Forty-seven and 00/100 ($45,147.00) Dollars (hereinafter referred to as "Escrow Funds") in escrow pending the completion of the project. WITNESSETH: NOW THEREOFRE, intending to be legally bound hereby and in consideration of mutual promises hereafter set forth, the parties hereto agree as follows: 1. Escrow Agents shall hold the Escrow Funds in an interest bearing account, and when they disburse the final monies to Northeastern, pay all interest to the Shankles or, if monies are paid into court pursuant to paragraph 3 hereof, pay the interest into court. 2. Escrow Agents shall, upon receipt from any party of an occupancy permit issued by an officer of the Camp Hill Borough for the addition and improvements at 1915 Lenox Street, Camp Hill, Pennsylvania, disburse to Northeastern $35,147.00 within three (3) business days of receipt of such permit. It is specifically understood and acknowledged that the copy of the permit from the Camp Hill Borough shall, in and of itself, be sufficient to cause the Escrow Agents to disburse funds to Northeastern, even over the objection of Shankles. The balance of the escrow monies shall be paid to Northeastern upon Shankle's written authorization or when a contractor approved by Shankles and Northeastern certifies that the work has been done in a workmanlike manner and in accordance with the workout agreement of even date herewith. All fees incurred for the said contractor shall be shared equally by the parties. Contractor shall be chosen by Shankles from a list of three submitted by Northeastern. 3. In the event Escrow Agents do not receive, within sixty (60) days from the date hereof, a copy of an occupancy permit signed by an officer of the Camp Hill Borough and in the event Northeastern and Shankles cannot agree upon the disposition of the Escrow Funds, Escrow Agents shall be entitled to pay the Escrow Funds into a court of competent jurisdiction whereupon Escrow Agents shall have discharged all of their obligations pursuant to this Escrow Agreement. 4. Any fees charged by Gregory R. Reed, Esquire for his services as an Escrow Agent shall be paid by Northeastern and any fees charged by Carol J. Lindsay, Esquire, for her services as an Escrow Agent shall be paid by Shankles, except that Northeastern shall pay the first $300.00 of Carol J. Lindsay's fees actually incurred for services as an Escrow Agent. S. The Escrow Agents acting or refraining from acting reasonably and in good faith (A) shall not be liable for any mistake of fact or error of judgment be it or for any acts or omissions by them of any kind unless caused by willful misconduct or gross negligence, and shall be entitled to rely and shall be protected in doing so, upon (i) any written notice, instrument or signature believed by it to be genuine and to have been signed or presented by the proper party or parties duly authorized to do so and (ii) the advice of counsel (which counsel may be of the Escrow Agents' own choosing), and (B) shall have the responsibility for the identity, authority or rights of any person herein or entity executing or delivering or purporting to execute or deliver this Escrow Agreement or for the contents of any writing submitted to it hereunder and shall be entitled reasonable and in good faith to rely without any liability upon the contents thereof and may assume that any person purporting to give any such writing in connection with the provisions of this Escrow Agreement has been duly authorized to do so. The Escrow Agents make no representations as to the validity, value, genuineness or the collectability of any security or other document or instrument held by or delivered to them. 6. Northeastern and Shankles agree to indemnify the Escrow Agents and hold them harmless from and against any and all losses, liabilities and expenses incurred by the Escrow Agents arising out of or in connection with the performance of their duties hereunder or any dispute between the parties hereto, except those resulting from willful misconduct or gross negligence. 7. The parties agree that all notices hereunder shall be in writing, shall be given by personal service, or by registered or certified mail, addressed to Northeastern, Shankles, or Escrow Agents at the addresses appearing below: Northeastern Home Improvements of Harrisburg, Inc. 145 North Enola Street Suite 106 Enola, PA 17025 Mr. and Mrs. Gerald C. Shankle 1915 Lenox Street Camp Hill, PA 17011 Escrow Agent: Carol J. Lindsay, Esquire 26 West High Street Carlisle, PA 17013-3016 Escrow Agent. Gregory R. Reed, Esquire 2423 N. Third Street Harrisburg, PA 17110 Such addresses may be changed from time to time by any party as to itself by serving notice as above provided. Such notice shall be deemed given on the date of personal service, or on the third (3=d) business day after mailing by certified or registered mail, as the case may be. S. Except with respect to the indemnity provided in paragraph 5, which indemnity shall survive the expiration of this Agreement, this Agreement shall expire upon the final disposition of the Escrow Funds pursuant to the Workout Agreement or this Agreement. 9. The Escrow Agents shall not permit the release of Escrowed Property, except as permitted under this Escrow Agreement. 10. The duties and obligations of the Escrow Agents shall only be such as are specifically set forth in this Escrow Agreement, as it may be amended from time to time, and no implied duties or obligations of Escrow Agents shall be read into this Agreement. Without limiting the generality of the foregoing, the Escrow Agents shall have no duty to ascertain whether Northeastern or Shankles have complied with their respective obligations hereunder or under the Workout Agreement. 11. This Agreement may be executed in counterparts, each of which shall constitute an original Agreement, but together shall constitute the same instrument. 12. This Escrow Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania, including its statutes of limitation but without regard to its rules concerning conflicts of law. 13. Any invalidity, in whole or in part, of any provision of this Escrow Agreement shall not affect the validity or enforceability of any other of its provisions. 14. This Escrow Agreement shall be binding on and shall inure to the benefit of the parties hereto, their successors, heirs and assigns. 15. The Escrow Agents may not assign their rights and obligations under this Escrow Agreement without the prior written consent of Northeastern and Shankles. 16. The recitals appearing before Paragraph 1 of this Escrow Agreement constitute a material part of this Escrow Agreement and are expressly incorporated herein by reference. IN WITNESS WHEREOF, intending to be legally bound hereby, the parties hereto have executed this Escrow Agreement on and as of the day and year first above written. ATTEST: WITNESS: Mark Kerlin, President of Northeastern Home Improvements of Harrisburg, Inc. ^ Shankle, Jr. Patricia A. Shankle WITNESS/ATTEST: WITNESS/ATTEST: THE ESCROW AGENT: THE ESCROW AGENT: FROM ' FLOWER FL a' 8 L f NpSgy . ......................... . FAX N0. : 2436510 ..................... . ............... ( 1 ( Jul. 21 2000 10:56Rhi P7 Ty TTn j?? J `?;. ""a mameen i aulttAp ALCCjA 125 North Enola Strrsel rite Enola, PA 17025 106 (717) 732-3600 r•ra// d' P, ?r Job No. Deis _ 5?a yi99 me IalderaigntM hsmku or call ate C Phonot 1/ 7 7 7 / (ItWrovatrterth datwdbed ha., a?adnp to the apraottxt prp? ro hanbh at mail risk and labor to balls Polrowbtg ePadteetlone. aNn t cbtmhua and Macs the I. OBTAIN ALLAPPflDPR1ATE butdl PEfl1ygTS AND kVSU ng loealad of above address. J RANCES. A, Less Mcount IiANOT/ip. y < n. x TOTAL /. 41 -- DIP Received ., .., SALANCErrn i.., wrst/ceM 7.1, of {t' ?MN? d Biel. to he anereced f??// Ccr The t:aneaabr ahep be '¢oQ?wKry /?rl'IMf...FS ?/CYQ t: BYO °?- We l?Iradar, Porto wd artbb proe°aa odor =v%7h an a a6oW ?,/?-/?' / r r?. 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FROM FL04ER FLOWER & LINDSgy - • 2436510 Ju I . 21 2WO 10: 54AM p5 NORTHEASTERN .HOME IMPROVEMENT OF HARRISBURG: PROPOSAL FOR GERALD AND PATRICIA SHANKLE; 2ND STORY ADDITION 1 • REMOVE EXISTING ROOF FROM THE HOME AND DECK EXISTING RAFTERS PLYWOOD. WITH INCH 2 FRAME OUT SIDEWALLS WITH 2X4 CONSTRUCTION 16 INCHES ON 3. SET AND LEVEL NEW SIDEWALLS AND TIE INTO NEW FLOOR CENTER 4. INSTALL NEW ROOF FRAMING WITH 2X6 CONSTRUCTION AND % 5, INSTALL NEW FELT AND SHINGLES TO NEWLY CONSTRUCTED ROOF. H PLYWOOD. 6. CLOSE IN EXTERIOR WALLS WITH ?/, INCA TONGUE AND GROOVE POLYSTYRENE AND INSTALL PLYWOOD IN ALL CORNERS AND OPENINGS FOR ADDED SUPPORT, 7. INSTALL SIDING TO ENCLOSE THE NEW 2ND FLOOR ADDITION, COLOR TO BE CHOSEN BY CUSTOMER. 8. INSTALL NEW SOFFIT AND FASCIA IN COLOR OF CUSTOMERS CHOICE TO ALL OVERHANGS, 9. INSTALL ELECTRIC RACEWAY THROUGHOUT THE ENTIRE 2ND POOR AND RUN NEW HEATING DUCTS AND TIE IN WITH EXISTING FURNACE. 10. RUN ALL NEW PLUMBING TO THE NEW % BATH AND MASTER BATH. 11. INSTALL ALL TOILETS, VANITIES, SINKS, TUBS AND SHOWERS THROUGHOUT THE BATHROOMS. 12. PLUMBING INCLUDES HOT AND COLD WATER, 4 INCH WASTELINE, VENT STACKS, AND SHUTOFF VALVES. 13. 2U° STORY WILL CONSIST OF BATH, 2ND BEDROOM, STAIRWTAYY, FAND HALLWAY TER BEDROOM WITH MASTER BATH, i5 14. INSTALL ALL NEW WOWS A TOTAL OF 9 WINDOWS ON 2ND FLOOR. INSTALL ALL INTERIOR DOOR AND THEY WILL BE UNFINISHED OW' EITHER A LIGHT OR DARK STAIN DOORS THAT WILL BE STAINED IN 15. INSTALL NEW % INCH DRYWALL„ SPACKLE, SAND AND PAINT INTERIOR IN COLOR OF CUSTOMERS CHOICE SEMI GLOSS. 16. INSTALL NEW BASE TRIM AND WINDOW AND DOOR 17. STAIN OR PAINT TRIM ACCORDING TO CUSTOMER TRIM (CLAMSHELL PINE STYLE), 18. INSTALL NEW FLOORING THROUGHOUT THE NEW ADDITION CUSTOMER TO CHOOSE FROM COMPANY STOCKED MATERIALS. 19. INSTALL ALL OUTLET AND SWITCH COVERS IN EITHER ALMOND OR WHITE TO ALL OUTLETS AND SWITCHES. 20. INSTALL OUTSIDE CENTRAL AIR CONDITIONING UNIT DUCTWORK IS ALREADY RUN, 2 L INSTALL A FRONT PORCH WITH A MARQUIS ROOF WITH SHINGLES TO MATCH. IT WILL CONSIST OF PICKETS, TONGUE AND GROOVE FLOORING, FBVISHED PORCH CEILING IN r WHITE VINYI, AND ALL OVERHANGS IN WHITE VINYL. 22, HAUL, AWAY ALL JOB RELATED DEBRIS FROM THE 108 SITE AND ISSUE WARR AMrma UPON COMPLETION. ........................................................................................ FL01.)ER R-MER & LINDSAY FAX NO. 2436510 Jul- 21 2600 10:53FVI p3 NORTHEASTERN HOME IMPROVEMENT OF HARRISBURG: PROPOSAL FOR GERALD AND PATRICIA SHANKLE ADDITION 14'X 16'. i • EXCAVATE 10 X 24 AREA 2 STEMMING FROM THE KITCHEN AREA. . DIG FOO TER TRENCHES 8-12 INCHES AROUND THE PERIMETER OF THE OUTSIDE WALLS. 3 WE WILL SET EACH AND EVERY FORM INSIDE OF THE TRENCHES SO WE ARE PREPARED TO POUR FOOTERS. 4. APPLY TO CODE. APPROXIMATELY 4 INCIIES OF 2B 5• STONE SIZE INSIDE ALL FORMS, OR SUSPEND ALL SUPPORT REINFORCEMENT BAR INSIDE FORMS THAT TIE IN WITH EXISTING BLOCK OR STONE FOUNDATION. 6. WE WILL THEN POUR OUR FREEZE RESISTANT CONCRETE INTO ALL FORMS. CONCRETE WILL BE 3500LB PER SQARE INCH FINISHED CONCRETE FOUNDATION, AND WILL BE MIXED ON THE JOB SITE. 7. INSTALL THREE TO FOUR COURSES OF TEN INCH CONCRETE BLOCK. 8. STARTING AT THE CORNERS ALL BLOCK CORNERS WILL CONSIST OF REINFORCEMENT BARS TIED INTO FOOTER EVERY FIVE FEET, ON A RUN. 9. BACK FILL THE REINFORCEMENT. BAR WITH CEMENT TO ENSURE A STRONG AND STABLE FOUNDATION. 10. INSTALL A PRESSURE TREATED MUDSILL THAT WILL BOLT INTO THE CONCRETE BLOCK. 11. AP CRgO MATE?M N TIM FN I7RE ADDITION AND DIG A FOOTER 12. ON TOP OF THIS FOOTER SITE TO JOB SPECIFICATIONSL INSTALL A CONCRETE PIER FORMED ON 13. INSTALL ON TOP OF THE PIER A GIRDER PRESSURE TREATED POST TO S UPPORT THE 14. INSTALL D WITH T A LAG GIRDER WIDTH WISE ON TOP OF THE POST AND SECURE AT EACH Is. Wg . WILL INSTALL A COMPLETE LEDGER BOARD INTO EXISTING HOME THE RIM JOIST OF 16. INSTALL JOISTHANGERS MADE OF HEAVY GAUGE ALUMINUM OR GALVANIZED STEEL. 17. INSTALL A 6 MI. THICK POLYURETHANE PLASTIC BARRIER AND A COATING OF 28 STO 19 . INSTALL ANE T JOREVE OUND MOISTURE FROM RISING INTO ADDITION. NAILED INTO MUDSILL WITH GALVANIZED 16D 16D NAILS NEW FOUNDATION RIM 19, INSTALL FLOOR JOISTS 16 INCHES ON CENTER TO THE GIRDER THAT RUNS DOWN THE CENTER OF THE FOUNDATION. 20. A BLOCKING IS FASTENED TO EACH AND EVERY FLOOR JOIST TO ENSURE THE 21. FLOOR IT O THE ADDITION. HOME, WILL FASTEN TO THE RIM JOIST ON TIC OUT SIDS DT THE ?s?? ?seC??'rCt Y C 49 ?"'?V jr I( z 1f , ................. . ............. . OWE R FLOl4:R 8 LIMDSgY ................. FAX .. .. NJ. .......243........65 . FROM FL ....................................... 10 ... ................ ................ Jul. 21 200 10:54AM P4 22. WE WILL THEN INSTALL THE SUBFLOOR OF THE HOME. 23, INSTALL A 6 INCH FIBERGLASS INSULATION WITH HEAT SOURCE TO PREVENT A MOISTURE BARRIER BETWEEN SOUR AND B THE PAPER FACING THE 24. THE SUBFLOOR WILL E ?/. INCH PL TEN THE SPECIFICATIONS. FOOD NAILED TO BUILDING 25. INSTALL A STAGGERED SUBFL FLOORS. OOR TO ELIMINATE UNSTABLE SQUEAKY 26. WALLS WILL BE ROUGH FRAMED O DRIED LUMBER. N SITE WITH ALL HAND SELECTED 27. FRAMING CONSISTS OF SOLE PLATES DOUBLESTUD CORNER pOS KILN INCHES OI NAC EENTER. MER STUDS, DOUBLE TOP PLATES STS, CRIPPLE 28. REMOVE EXISTING BRICK ,ALL STUDS 16 OUT WALL TO LINE UP N A WHERE DDITION WALL IES INTO HOME AND NOTCH 29. BUILD INTO EXISTING WALL A LINES UP. AND CHALKING BLOCKS THREE STUD CORNER POST WITH PLATE 30. STAND UP PRESET. WALLS AND ATTACH TO TIM TIIMEE CO TOP 31. INSTALL ONSIOHT 2X4 CONSTRUCTED SIDEWALLS OP FLOOR ADDITION. ON TOPO CO RNER POST. 32. INSTALL NEW 2 X 4 PLATES ON R O OF TIM FIRST 33. INSTALL A NOTCHED AND INSTALLED F DECKING AND ADDITION WITH A 1OOT OVE RIDGE BOARD X To THE 4 BLOCK. OF THE RAFTERS LOCATED 16INCHES ON CEENTE UST FI HAND UT AND CRAFT ALL RIDGEEOARD AND WALL PLATES. RAFTERS WILL NAIL INTO 34. ROOF ALSO INCLUDES CEILING JOISTS BUILT ON SITE NAILED INTO WALL PLATES. 35. DECK ROOF WITH % INCH PLYWOOD FELT COLOR CHOICE. AND SHEVGLE OF CUSTOMERS 36. INSTALL ALL SOFFIT, FASCIA, AND G 37. INSULATE ALL WALL CAVPPIES W1TH4"FIBERGLASS INS 38. INSTALL OUR ?T71:R TO THE NEW ADDITION, IN At-man p 39. SHEET THE EXTE OR WALLS RACEWAY THROUGHOUT THE ENTIRE ADDITION. WINDOWS AND DOORS, THIS INCLUDES ES 8. WBOARDAND FRAME INDOWS AND I DOORS ALL EXTERIOR 40. INSTALL 1/2-INCH POLYSTYRENE ?'R'OOWS AND . 41. INSTALL VINYL SIDING COLO INSULATION BOARD TO 42• INSTALL VINYL SIDING CO CUSTOMERS CHOICE TO NEW ADDITION. % INCH DRYWALL ADDITION AND SPACKLE S THROUGHOUT THE ENTIRE INTERIOR OF THE NEW 43. ALL RECEPTACLES WILL BE B AND, AND PAINT ALL DRYWALL. 44• TRIM OUT ALL BUILT TO CODE. PAINTED WINDOWS, DOORS, AND BASE MOLDINGS ErmeR STAINED OR 45. INSTALL PADDING AND CARPET THROUGHOUT THE ADDITION. 46. THIS ADDITION WILL BE BUILT TO FINAL FLOOR PLAN, TO CODE AND BE READY FOR INSPECTION. 47. TIE IN WITH EXLSTINO HEAT AND RUN NEW BASEBOARD THROUGHOUT ADDITION. 48. INSTALL ANEW KITCHEN CONSISTING OF CHADWOODCABINETS W COUNTERTOP AND SINK. CUSTOMER WILL SUPPLY ANY APPLIANCES (REFRIGERATOR, OVEN. MICROWAVE, WITH DESIGN ON KITCHEN WITH CUSTOMEP, WE STILL HAVE TO FINALIZE ?''e~/7+bwc?e k a ' .. ? iii.. i ' S S 0P h' C f+ ti r tt ?' N I J D ?• P ? O C ? n ? C R •F. I- ? L h Q L E ? n r s [h A A ? > T 7- Pa s w 0 ? h s N P O v D P H E c ti V % ft y .. g An 9d WdSS;BT 80M TZ •Inr ' 0TS9£VZ 'OW XFid :. ' .............................. AtsaHl'1 8 d3M-U 8IDId wmw ? a N e - r. O I N 3 N 4O 0 g I S II I ss` i 11, !6i t I I b? 't . fr 14 f d 1 fr$ ¦ ?aa mil - x?4bi,t 11311 Z¦•d 1¦f.9LR44t4 IIIM duum 9 1 P Yd LL`=Z¦ •¦-Fi-111 j` . J. e d 2: ssD L.? 2•."d L099L21LLL 771H dWW3 H 2 f Wd LC:L6 •0-21-7nr .ter.... ... .. - ... _ _ .. .. ... F 4 P lu a asE 1,2 1111 r914 LOC9424LS4 l1IM aww3 g g f Wd ZG:LO •O-Ft-lflf f 111P CO*J 40Q94SL4SL 111H ambo 6 7 t Md tc:t0 Be-FS--vnr .T . Sl'I ? /'? E pcN _ l /,w c? s?rP? 5 /y re r#,- JU7-31-00 07254A PsyCh Utric AssOC/Car PA ~J? v d ?NP 3 d% ti J Y? -r ti v M7fx:1 ;ggy,yj IL u- M z Z cu o to y+ $ C x v 1y 1-- s 1.1 M TWA +JWWLPS 4 V. h 6 rte. 4 Ica WW oW* ??• W J P.O1 .!''?•' :'fir :?.?', .. .. .. , . ,v,.. j ?. ? ...:. ai. n• ..•..YAr ?.,:1YFa.11:.::..??}'i•i'• j 't•r ? • i.' 4• h• :, po wN y .. ? r s u?S s N ?? ?9 -05 -WROOM $4NDS ALLOCs " FOR MASTER BEDROOM . ?TSR nATs CLOSETS LI MASTER HATE $3,202.45 SECOND HATS $ 838.43 BATHROOM/BEDROOM/BALL CLOSET/LIGHTS $ 419.36 TOTAL $4,460.24 E MISIT 6 rA.. Aug-15-00 08:42A Psychiatric Assoc/Cent PA P.O1 8/15/00 TO: Carol Undsay Fax # .2 ?3 4 4Sly From: Pat Shankle The kitchen flooring information. Armstrong - Item #24812 h J. - rt: ' ? - ': $. .i ??1 :???^???p-may .^? - • - f . The following are areas that need to be completed along with the workout agreement items. Kitchen The original kitchen ceiling above the cabinets is unacceptable and needs to be redone and painted The space between the microwave and cabinets needs to be completed The outlets near washer/dryer closet in the kitchen are not working The kitchen plumbing under sink - holes need to be filled in per Camp Hill Borough Inspector The kitchen stove is not level and the outlet needs to be relocated so that the stove will fit back against wall The kitchen cabinet doors - one needs to be replaced due to being damaged during installation or it may have be received that way and the two doors were installed that were not the same pattern Some kitchen cabinets still need handles installed The bi-fold doors on washer/dryer room need to be adjusted The Refrigerator needs to be leveled All of the counters need to be caulked Some of the floor tiles in the kitchen are coming up The kitchen floor is marked with glue and needs solvent to remove and the floor needs to be cleaned. The kitchen needs cable/phone jacks installed The French doors in the kitchen need another bolt in the door handle, and the keys need to be turned over to us The screen doors need to be installed, and new weather strip/seal and base needs to be installed The outside siding needs to be leveled The recessed light above the kitchen sink needs to be installed The paint needs to be removed from all trim work The kitchen needs a second coat of paint. Livin Ro m The baseboards need to be installed The walls need to be patched, sanded and painted The marks/gashes in the hardwood floors caused by the construction workers need to be repaired Old Dining Room The new wall between the old dining room and the kitchen is unacceptable. It is not straight or level as well as the trim work around it The floor entrance from the old dining room into new addition needs to be redone Per the contract, the floor is to be level The brass floor strip from the old dining Basement room into the new addition is sticking up. The new ceiling wall going downstairs needs to be sanded and painted Stairwa t stairs Install new carpet due to stains/paint spots Walls need to be integrated (from old wall into new), sanded and painted 0 UDstairs Hallway New carpet, due to stains/paint spots, needs to be installed The carpet near the steps needs to be finished as the carpet was pulled out whenever the railing was installed Master Bedroom New carpet, due to stains/paint spots, needs to be installed The screen needs to be reinstall The fan/light switch for the second fanlight needs to be installed The fan needs to be balanced The drywall and paint around outlets needs to be touched up The Master bedroom door is not closing tightly against doorstop and needs to be fixed Master Bathroom New fixtures in shower and jacuai need to be installed The plumbing holes under sink need to be filled in per Camp Hill Borough Inspector Stainless steel screws need to be installed in the shower and the drywall screws need to be removed The shower door needs to be fixed so that it will shut per instructions of Camp Hill Borough Inspector The I g ue needs to be removed from the floor and the floor needs to be cleaned The drywall and paint around outlets need to be touched up The toilet tank lid needs to be replaced due to the comer being broken off 3oare Bedroom The new piece of trim outside of the bedroom door needs to be replaced and then primed and painted The new carpet, due to stain/paint spots, needs to be installed The cover with the screws to hide the pipes in the closet and heat/air conditioner unit n d installed ee s to be The ceiling where the smoke detector is installed needs to be redone The drywall and paint around the outlets need to be touched up Jordan's Bedroom The walls where the mud line is showing needs to be redone The holes in the wall need to be fixed. The bi-fold doors need to be fixed, and new hardware on the right door needs to be installed The cover with screws to hide the pipes in the closet needs to be installed The drywall and paint out the outlets need to be touched up The fan needs to be balanced. Jordan's Bathroom The correct hardware in the shower needs to be installed They need to be sure that the cold and hot are correct The sink needs to be fastened to the vanity The glue needs to be removed from the floor and the floor needs to be cleaned The bathroom door needs to be fixed so the same will close properly The carpeting is fraying at the bathroom entrance due to the problem with the door and needs to be fixed The cabinetry over the toilet needs to be installed A new light fixture needs to be installed The hardware on the vanity needs to be installed All Rooms The phone/cable lines (upstairs/downstairs) need to be connected so that they all work Outside The down spouting on the front porch needs to be installed The new cap around all of the first floor windows, some need installed on top and front and back windows need completely redone due to construction damage The new screens on the first floor windows were damaged by construction and needs to be replaced The screens that have cement stains need to be replaced The front door needs to be fixed so that it shuts completely, and the front door screen and frame need to be replaced due to being damaged by construction workers The sides and front of the front porch need to be fastened to soffit The front yard needs to be leveled and seeded The backyard needs to be seeded All of the dirt must be away from the house per Camp Hill Borough Inspector The drain line for the down spouts so that water runs away from house needs to be installed Need to install a trap door on addition for outside access The gutters near the back door need to be fixed as the water runs straight down in the comer The spouting in the back left corner near the door needs to be nailed down The front siding near the Master Bedroom window needs to be nailed down The siding on the front porch near "J" needs to be nailed down Front porch: switch board around near swing; the loose board needs to be nailed down; the pose and bowed board needs to be replaced The back porch light needs to be removed and installed properly per discussion with Mark Kerlin The electrical outlet needs to be installed on the back of the house The dumpster needs to be removed and Lenox Street needs to be cleaned of debris and mud from the dirt pile The house needs to be washed down, including the brickwork, siding and front porch Three feet of the shingles need to be removed, as well as a watershield installed and new shingles installed along with gutters, pipe collars and drip-edge extensions. O ?v •v; J T-' Z: O: Z_ -I O 1.. y ; ni r; Ncl V G c J r O PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs vs. NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW 01-2430 CIVIL IN RE: PRETRIAL CONFERENCE Present at a pretrial conference held this date were Joseph L. Hitchings. Esquire, attorney for the plaintiffs, and Richard Rupp. Esquire, attorney for the defendant. Counsel have agreed to set a discovery deadline for the end of October and to proceed to a nonjury trial on December 11 s'. An order has been entered of even date herewith reflecting this understanding. August 21, 2002 Joseph L. Hitchings, Esquire For the Plaintiffs Richard Rupp, Esquire For the Defendant Court Administrator KeA . Hess, J. Arn hC:1i?y ?loily?o Pit- PATRICIA A. SHANKLE and IN THE COURT OF COMMON PLEAS OF GERALD C. SHANKLE, JR., CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs CIVIL ACTION - LAW Vs. NO. 2001 - of ?t3o CIVIL TERM NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., : IN ASSUMPSIT Defendant : JURY TRIAL DEMANDED PRAECIPE TO THE PROTHONOTARY: Please reinstate the Complaint in the captioned case. SAIDIS, SHUFF, FLOWER & LINDSAY, P.C. Attorneys for Plaintiff By: I J. indsay, ire 1 44693 26 West High Street Carlisle, PA 17013 (717) 243-6222 SAIDIS SHUFF, FLOWER & LINDSAY Artnturers.Anuw 26 W. High Street Carlisle, PA 1? ) SHERIFF'S RETURN - REGULAR CASE NO: 2001-02430 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND SHANKLE PATRICIA A ET AL VS NORTHEASTERN HOME IMPROVEMENTS RICHARD SMITH Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG INC the DEFENDANT , at 1310:00 HOURS, on the 30th day of May 2001 at 125 ENOLA DRIVE SUITE 106 ENOLA, PA 17025 by handing to CINDY BLOOD, CORP COORDINATOR a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing Her attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 9.30 Affidavit .00 Surcharge 10.00 .00 37.30 Sworn and Subscribed to before menthis 214L day of ` - :l&V/ A.D. C ?. - TP othonotary So Answers: R. Thomas Kline 05/31/2001 SAIDIS SHUFF LO R? LINDSEY By: e ??h/ PATRICIA A. SHANKLE and : IN THE COURT OF COMMON PLEAS OF GERALD C. SHANKLE, JR., : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs : CIVIL ACTION - LAW Vs. : NO. 2001 - 2430 CIVIL TERM NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., : IN ASSUMPSIT Defendant : JURY TRIAL DEMANDED IMPORTANT NOTICE ?' - TO: Northeastern Home Improvements of Harrisburg, Inc. c% Richard C. Rupp, Esquire RUPP AND MEIKLE - 355 North 21" Street, Suite 205 Camp Hill, PA 17011 SAIDIS SNUFF, FLOWER & LINDSAY ATrMMAW 26 W. High Street Carlisle, PA YOU ARE IN DEFAULT BECAUSE YOU HAVE FAILED TO TAKE ACTION REQUIRED OF YOU IN THIS CASE. UNLESS YOU ACT WITHIN TEN (10) DAYS FROM THE DATE OF THIS NOTICE, A JUDGMENT MAY BE ENTERED AGAINST YOU WITHOUT A HEARING AND YOU MAY LOSE YOUR PROPERTY OR OTHER IMPORTANT RIGHTS. YOU SHOULD TAKE THIS NOTICE TO A LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE FOLLOWING OFFICE TO FIND OUT WHERE YOU CAN GET LEGAL HELP: CUMBERLAND COUNTY BAR ASSOCIATION 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 SAIDIS, SHUFF, FLOWER & LINDSAY, P.C. Attomeys for Plaintiff 26 West High Street Carlisle, PA 17013 (717) 243-6222 PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs VS. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW : NO. 2001 - 2430 CIVIL TERM NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., : IN ASSUMPSIT Defendant : JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Carol J. Lindsay, do hereby certify that in accordance with Pa.R.C.P. SAIDIS SHUFF, FLOWER & LINDSAY ATFURNE S.ANAW 26 W. High SUM Carlisle. PA Section 237.1, 1 have this date mailed to the Defendant in the above captioned action, Notice that unless they take action within ten (10) days, a default judgment will be entered against them. SAIDIS, SHUFF, FLOWER 8 LINDSAY, P.C. Attorneys for Plaintiff ?_; c:_ ._ ?: ..,?,._ r' _- : ? i:. r_ ?' `?! i•'. ' •'? J Rupp & Meikle BY. Richard C. Rupp, Esquire Attorney I.D. No. 34832 355 N. 21" St., Suite 205 Camp Hill, PA 17011 Telephone: (717) 761-3459 Attorney for Defendant PATRICIA A. SHANKLE and : IN THE COURT OF COMMON PLEAS OF GERALD C. SHANKLE, JR., : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs VS. : CIVIL ACTION - LAW : NO. 2001-2430 CIVIL TERM NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC. Defendant IN ASSUMPSIT JURY TRIAL DEMANDED NOTICE TO PLEAD TO: PATRICIA A. SHANKLE AND GERALD C. SHANKLE, JR., PLAINTIFFS c/o CAROL LINDSAY, ESQUIRE SAIDIS SHUFF FLOWER & LINDSAY 26 WEST HIGH STREET CARLISLE, PA 17033 You are hereby notified to file a written response to the enclosed Answer and new Matter and Counterclaim of Defendant within twenty (20) days from service hereof or a default judgment may be entered against you. ( Dated: July 16, 2001 Attorney for Defendant PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs Vs. NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC. Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2001-2430 CIVIL TERM : IN ASSUMPSIT : JURY TRIAL DEMANDED ANSWER. NEW MATTER AND COUNTERCLAIM AND NOW comes Northeastern Home Improvements of Harrisburg, Inc., by and through their attorneys, Rupp and Meikle and Richard C. Rupp, and avers as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Denied. It is denied that Plaintiffs advised Defendant's agent that the primary purpose of the addition was to accomodate the Plaintiff Patricia Shankle's elderly parents who were moving into Plaintiffs' residence 1 and in particular to accomodate Patricia Shankle's father who uses a wheelchair. To the contrary, it is believed that the addition was primarily to accomodate the Plaintiffs as the parents were intended to occupy the previously existing portion of the Plaintiffs' residence. 6. Denied. It is denied that on May 6, 1999 the Defendant's agents Mark Kerlin and Jamie Walsh advised Plaintiffs that the additions contracted for would be completed by Labor Day, 1999. To the contrary, the original contract dated May 24, 1999 does not specify any completion date. Further, the Defendant's agents may have attempted to give an approximate or ballpark date of completion, but it assumed no problems or delays. 7. No answer is required as the contract speaks for itself. To the extent the averments in Paragraph 7 of Plaintiffs' Complaint require an answer, it is denied that further delays continued and by April 2000 after numerous warnings Plaintiffs advised Defendant that they considered Defendant to have breached the contract. To the contrary, the Plaintiffs could not, initially, obtain a building permit for this project. The Plaintiffs, therefore, had to seek a variance from the Camp Hill Zoning Hearing Board. After the Zoning Hearing Board granted the Zoning relief to the Plaintiffs, the Plaintiffs could obtain their necessary 2 building permit. The Defendants assisted the Plaintiffs in obtaining this necessary zoning relief to allow the Plaintiffs' project to proceed. Other delays were attributable to winter weather and to the Plaintiffs who did not want Defendant's workers on the site at various times including the holiday period. It is Admitted that Plaintiffs advised Defendant they (Plaintiffs) considered Defendant to have breached the contract. 8. Admitted. 9. Admitted. 10. No answer is required as the Agreement speaks for itself. 11. No answer is required as the Agreement speaks for itself. 12. Admitted. 13. Denied. It is denied that Defendant has not fulfilled the provisions of the workout agreement and may particulars set out on Exhibit "B" attached hereto and incorporated herein. To the contrary, Defendant has fulfilled the provisions of the workout agreement. Defendant has fulfilled all of the provisions of the workout agreement. Defendant 3 conducted a final inspection with the homeowner and the Camp Hill Borough Codes Inspector at which time all unfinished items were finished in order for the Plaintiffs to obtain an occupancy permit from the Camp Hill Borough. Further, Defendant offered to come back but it was Plaintiffs who prevented Defendants from returning to finish any minor items. It is denied that there are any uncompleted items to be completed by Defendant except for some touch up items which Defendant offered to complete but was prevented from doing so by Plaintiffs. It is denied that in particular Defendant has failed or refused to comply with Paragraph 94 which calls for the new addition to be level and match with the existing home so that a person can enter and exit the addition from the original house in a wheelchair without assistance. To the contrary, the Defendant worked meticulously to tie the addition on the first level into the existing home despite a seriously askew floor in the existing dwelling. A person in a wheelchair can enter the addition from the existing dwelling. 14. Denied. It is denied that Defendants performed the contract in a poor improper unworkmanlike manner as set forth in Exhibit "C". To the contrary, the Defendant completed the contract and the workout agreement in a proper, good and workmanlike manner and conducted a final inspection of the house with the homeowner and the Camp Hill 4 Borough Codes Officer with no further items to complete at that time except for possibly some touch up items which Defendant offered to complete but was prevented from doing so by Plaintiffs. 15. Denied. It is denied that despite reasonable extensions of time by the Plaintiff, the Defendant has failed or refused to cure the aforesaid breaches of the workout agreement. To the contrary, the Defendant is unaware of any extensions of time to cure the alleged breaches of the workout agreement. The Plaintiffs did not want the Defendant's workers on the job for any possible touch ups that might have been needed. Further the Defendant did want some items which were not contracted for as if they were to be provided under the contract. Further, the Defendant is unaware of any breaches by Defendant of the workout agreement. 16. Denied. It is denied that the reasonable costs actually incurred are or to be incurred by Plaintiffs in remedying the alleged breaches described are in excess of $25,000, the statutory limit for arbitration including attorneys fees to reasonably enforce the terms of the workout agreement, Penalties for delay, the cost to complete the project and the cost to remedy poor, improper unworkmanlike construction. To the contrary, the Defendants have not breached its workout agreement. 5 The Defendant conducted a final inspection with the homeowner and the Camp Hill Borough Codes Inspector where all final issues were raised and corrected in order for the Borough to issue the occupancy permit to the Plaintiffs. Furthermore, in the alternative, it was the Plaintiffs who breached the workout agreement by preventing Defendants from complying with the terms of the workout agreement. As such, Defendant is not be responsible for any further costs, any penalties, any delay, costs, any attorneys' fees or any payment for any alleged remedies. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs in favor of Defendant by dismissing said Complaint with prejudice. NEW MATTER Northeastern Home Improvements of Harrisburg Inc v Patricia A Shankle and Gerald C. Shankle. Jr. AND NOW comes Northeastern Home Improvements of Harrisburg, Inc., through its attorneys who avers the following New Matter: 6 COUNT I - BREACH OF CONTRACT 17. The Defendants averments in its foregoing paragraphs in its Answer , paragraphs 1 - 16, to Plaintiffs' Complaint are incorporated herein by reference as if set forth in full. 18. The keys were lost to the French Doors. Although Defendant believes the keys were delivered to Plaintiff, the Defendant caused a locksmith to come out to the Plaintiffs' home three times to try to re-key the lock but the Plaintiffs prevented the locksmith from performing this work, 19. The Plaintiffs prevented the Defendant from performing its work under the workout agreement by preventing the Defendant's workmen from being able to work in the mornings when they arrived to work. 20. After executing the workout agreement the Plaintiffs changed the terms of the cabinets and appliances to be installed because Plaintiffs' original selection exceeded their contract allowance. The Plaintiffs' change in cabinets and appliances caused downtime to Defendants, thereby further delaying Defendant in performance of the workout agreement. 7 21. Plaintiffs would not allow Defendant's workmen in to work on certain days. 22. There was a final inspection with the Plaintiffs and the Camp Hill Code Inspector where many issues or questions were raised. 23. Defendant completed any issues raised by Plaintiffs or the Camp Hill Borough Codes Inspector required to cause the occupancy permit to be issued. 24. There were no final issues remaining after this meeting with the Camp Hill Borough Codes Inspector except for possibly some touch ups. 25. Defendant is entitled to payment of the final escrow sum of $ 10,000 by reason of Defendant's completion of its work under both the original contract and the workout agreement. 26. Despite the completion of its work under the original contract and the workout agreement, the Plaintiffs have not authorized the final release from the escrow agreement of the final $ 10,000 payment to Defendant. 8 27. For the aforesaid reasons, the Plaintiffs have breached the workout agreement with Defendant. 28. For the aforesaid reasons, the Defendant is entitled to reasonable attorneys fees from Plaintiffs. 29. By reason of Plaintiffs' breach of the said workout agreement dated August 18, 2000 Defendant is not responsible for any remedying costs, attorneys' fees, delay costs or penalties or any other damages. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs for the sum of $ 10,000.00 in favor of Defendant, ordering the disbursement of said sum from the escrow fund in this matter plus attorneys fees and by dismissing Plaintiff's Complaint with prejudice. COUNT II -ESTOPPEL 30. The Defendants averments in its foregoing paragraphs 1 - 29 in its Answer and New Matter to Plaintiffs' Complaint are incorporated herein by reference as if set forth in full. 9 31. For the aforesaid reasons, the Plaintiffs are estopped from claiming damages, attorneys fees, delay damages, penalties or any other form of damages from Defendant. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs for the sum of $ 10,000.00 in favor of Defendant, ordering the disbursement of said sum from the escrow fund in this matter plus attorneys fees and by dismissing Plaintiff's Complaint with prejudice. COUNTERCLAIM - BREACH OF CONTRACT Northeastern Home Imorovements of Harrisburg Inc III. Patricia A Shankle and Gerald C. Shankle Jr. 32. The Defendants averments in its foregoing paragraphs in its Answer to Plaintiffs' Complaint and New Matter, paragraphs 1 - 31, are incorporated herein by reference as if set forth in full. 33. For the aforesaid reasons, Plaintiffs breached the workout agreement with Defendant. 10 34. By reason of Plaintiff's breach of the said workout agreement dated August 18, 2000, Defendants are not responsible for any remedying costs, attorneys' fees, delay costs or penalties or any other damages. 35. Plaintiffs incurred additional charges by items not covered by the original contract or by items which exceeded their allowances in the total sum of $ 2,717.46 which have not been paid by Plaintiffs to Defendant. A copy of Defendant's invoice to Plaintiffs is incorporated herein as Exhibit " A " and made a part hereof as if set forth in full. 36. By reason of Plaintiffs' failure or refusal to make payment of the aforesaid charges, Defendant has suffered damages in the sum of $2,717.46. 37. Defendant is entitled to payment of the final escrow sum of $ 10,000 by reason of Defendant's completion of its work under both the original contract and the workout agreement and the escrow agreement. 38. Despite the completion of its work under the original contract and the workout agreement, the Plaintiffs have not authorized the final release 11 from the escrow agreement of the final $ 10,000 payment to Defendant. 39. For the aforesaid reasons, the Plaintiffs have breached the workout agreement with Defendant. 40. For the aforesaid reasons, the Defendant has suffered damages in the sum of $ 10,000.00. 41. For the aforesaid reasons, the Defendant is entitled to reasonable attorneys fees from Plaintiffs in accordance with the workout agreement. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs for the sum of $ 12,717.46 in favor of Defendant, ordering the disbursement of said sum from the escrow fund in this matter plus attorneys fees and by dismissing Plaintiff's Complaint with prejudice. 12 Richard C. Rupp Attorney for Defendant Attorney I.D. #34832 355 North 21 st Street, Suite 205 Camp Hill, PA 17011 (717) 761-3459 13 RUPP AND MEIKLE VERIFICATION I, Mark Kerlin, verify that the facts set forth in the foregoing Pleading are true and correct to the best of my knowledge, information and belief. I am authorized to make this Verification as President of the Defendant on behalf of the Defendant. The undersigned understands that false statements herein are made subject to the penalties of 18 Pa. C.S.A. 4904 relating to unsworn falsification to authorities. Date: I G v Mark Kerlin, President Northeastern Home Improvements of Harrisburg, Inc. "HEA WMIIOMf/MPROYEMEN750FMW45NYRG, /NC. 125 NORTH ENOLA DRIVE, SUITE 106 ENOL1, PA 17025 PHONE: (717) 732-3600 FAX: (717) 732-3627 September 12, 2000 Patricia & Gerald Shankle 1915 Lenox Street Camp Hil , PA 17011 The amount due for the colon a' spindles, rails and posts for the front deck is as fo lows: $1,286.00 Thank you, Northeastern Home Improvements C XK(V3 LT A NORTHEASTENNHOME/MPRO*NENISOFMRR/SBUAG; INC 125 NORTH ENOLA DFUE, 5UITE 106 ENOLA,PA 17025 PHONE: (717) 732-3600 FAX: (717) 732-3627 September 27, 2000 Patricia & Gerald Shankle 1915 Lenox Street Camp Hill, PA 17011 As per the workout agreement, total funds allocated for the Master Bath, 2ndary Bath ar d Bathroom/Bedroom/Hall closet lights were: $4,460,24. Total of hems selected and installed equals: $5,891,70. Balance due Northeastern Home Improvements is: $1,431.46. 'Z I, Richard C. Rupp, Esquire, do hereby certify that I am serving a true and correct copy of the foregoing Answer, New Matter and Counterclaim upon the person(s) named below by placing the same in the United States Mail, First Class, Postage Prepaid on the date stated below. Carol Lindsay, Esquire Saidis, Shuff, Flower & Lindsay 26 West High Street Carlisle, Pa/ 17033-? ichard C. Opp, Esquirof Attorney I.D.# 34832 355 North 21st Street, Suite 303 Camp Hill, Pennsylvania 17011 (717) 761-3459 Dated: l l I b( D( APR 19 2004 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Patricia A. Shankle and Gerald C. Shankle, Jr. (Case No.: No. 2001-2430 Plaintiffs Iln Assumpsit- Jury Trial Demanded vs. Northeastern Home Improvements of Harrisburg, Inc. Defendant Action - Law ORDER AND NOW, this j2f,3j'_ day of 2004, upon consideration of the attached Petition, a hearing on said Petition is hereby scheduled for the o? r/ day of at / I 4 in Courtroom # of the Cumberland County Courthouse, Carlisle, Pennsylvania. By the Court: d e--. %`.. ? ? .. ? ,1 ;?. --?.ii ??_ IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Patricia A. Shankle and Gerald C. Shankle, Jr. se No.: No. 2001-2430 Plaintiffs In Assumpsit- Jury Trial Demanded vs. Northeastern Home Improvements of Ivll Action - Law Harrisburg, Inc. Defendant PETITION TO ENFORCE SETTLEMENT AGREEMENT AND NOW, this 4m.Lsr day of ??? 2004 comes the Plaintiffs, Patricia A. Shankle and Gerald C. Shankle, Jr., and petitions this Honorable Court to enforce the Settlement Agreement between the parties and avers in support thereof as follows: 1 • This action arises out of a construction project that was undertaken by the Defendant, Northeastern Home Improvements of Harrisburg, Inc. on behalf of the Plaintiffs at their residence located at 1915 Lennox Street, Camp Hill, Pennsylvania 17011. 2. This case proceeded through litigation and was scheduled for trial before the Honorable Kevin Hess on December 11, 2002. 3. On December 10, 2002, the parties reached a Settlement Agreement where, in exchange for Plaintiffs Release of all claims, Defendant would pay to Plaintiff the sum of thirteen thousand five hundred dollars ($13,500). Four thousand five hundred dollars ($4,500) of which was to be paid directly by the Defendant, with the balance coming from an escrow account that was being held by Attorneys Carol Lindsey and Gregory Reed per an Escrow Agreement dated August 18, 2001. 4. After agreeing to the terms of the Settlement Agreement, counsel for the parties notified the Court of the settlement and requested that the trial be cancelled. 5. Defendant's counsel, Richard C. Rupp, Esquire, drafted a Stipulation memorializing the terms of the Settlement Agreement between the parties and forwarded the same to counsel for the undersigned via facsimile dated January 22, 2003. A true and correct copy of the transmittal letter from Attorney Rupp along with the Stipulation is attached hereto, incorporated herein by reference and marked as Exhibit "A.' 6. Immediately upon receipt of the Stipulation, the Plaintiffs executed the same and returned a signed original to Defendant's counsel, Richard C. Rupp, Esquire. 7. Defendant's counsel, Richard C. Rupp, Esquire, has advised that his client will not execute the Stipulation nor will he make the payment to the Plaintiffs as agreed upon. 8. The escrowed funds cannot be release to Plaintiffs without a signed Agreement by the Defendant or a Court Order. WHEREFORE, Plaintiffs, Patricia A. Shankle and Gerald C. Shankle, Jr., hereby respectfully request that this Honorable Court enter an Order directing the Defendant to comply with the terms and conditions of the Settlement Agreement as memorialized in the Stipulation, and further that the Stipulation be entered as an Order of Court. Respectfully Submitted, THE LAW OFFICE OF / 4SEPH L. HITCHINr;c glttomey for Plaintiffs v3_- -Supreme Court ID# 65551 4708 Jonestown Road Suite 242 Harrisburg, Pennsylvania 17112 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Patricia A. Shankle and Gerald C. Shankle, Jr. (Case No.: No. 2001-2430 Plaintiffs Iln Assumpsit- Jury Trial Demanded vs. Northeastern Home Improvements of Harrisburg, Inc. Defendant Action - Law CERTIFICATE OF SERVICE I, Joseph L. Hitchings of The Law Office of Joseph L. Hitchings, Attorney for the Plaintiff, Patricia A. Shankle and Gerald C. Shankle, Jr., do hereby certify that I served a true and correct copy of the attached Petition to Enforce Settlement Agreement by United States Mail, First Class, postage prepaid upon the counsel listed below: Attorney Richard C. Rupp Rupp and Meikle 355 N. 21" Street Camp Hill, PA 17011 Respectfully Submitted, THE LAW OFFICE OF J EPH L. HITG I IGS seph L. Hit rags, Es 're ttomey for Plaintiffs Supreme Court ID# 65551 4P07Jonestown Road Suite 242 Harrisburg, Pennsylvania 17112 FROM :- Rupp 8 Melkle FAX No. : 730 0214 Jan. 22 2003 12:47PM P2 HERBERT G Burr. JR. RICHARD C. RVPr ANN MERKLE R11DK5RON (1854.54) LAW OFFICES RUPP AND MEIKLE A PROFESSIONAL(MRPORATION $65 NORTH 21ST STREET. SUITE to CAMP HILL, PA 17011 (7ll) 751.8868 EMAIL: ROPPLAWIWAOL.CON January 22, 2003 Joseph L. Hitchings, Esquire 203 West Caracas Avenue Suite 201 Hershey, PA 17033 MARINO ADDRESS P.0 Sox 855 CAMP HIL4 PA 17p51-0m TELErwx: (917) 790.5714 Re: ankle v Nertheasfern FIe.56e No. 2001-2430 I Ima a rents Settlement Dear Joe: Please find enclosed a proposed Stipulation in draft form. Please review it. If It Is acceptable, please let have Mr. Kerlin execute the Stipulation and forward info you four execution by the Shankles. Upon execution by the Shankles, obviously Attorneys Lindsay and Reed would be allowed to release the full escrow funds to you as attorney for Plaintiffs. 1 look forward to hearing from you. Thank you for your cooperation in this matter. Best regards. ItClt/lin Enclosure CC: Carol Lindsay, Esquire Gregory Reed, Esquire FROM : RuPP 8 Meikle FAX NO. : 736 0214 Jan. 22 2003 12:47PM P3 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PATRICIA A. SHANKLE AND GERALD C. ; CASE NO. 2001-2430 SHANKLE, JR. Plaintiffs : JURY TRIAL DEMANDED vs. NORTHEASTERN HOME IMPROVEMENTS ;CIVIL ACTION -LAW OF HARRISBURG, INC. Defendant finelaw-Im WHEREAS, the Plaintiffs are adult individuals who reside a I IAST l y St., Camp Hill, PA. Lenox WHEREAS, the Defendant Is Northeastern Home Improvements of Harrisburg, Inc., a Pennsylvania corporation doing construction and remodeling work. WHEREAS, the parties are litigants In a lawsuit Involving certain construction and remodeling work by the Defendant at the Plaintiffs, residence. (No. 2001-2430, Court of Common Pleas of Cumberland County, PA) WHEREAS, the lawsuit pertains to the application and interpretation of a certain "Workout Agreement" and "Escrow Agreement', both dated August 18, 2001, Involving the above-referenced construction and remodeling work by the Defendant at the Plaintiffs residence. WHEREAS, the parties have now reached an agreement to settle and discontinue above referenced litigation and settle and resolve fully and generally all claims either party may have against the other. FROM : Rupp 8 Meikle FAX N0. : 730 0214 Jan. 22 2003 12:48PM P4 AND NOW, this day of intending to be legally bound hereby, have agreed and stipulated as parties follows; 1 • The parties agree that all dollars in the said escrow account shall belong to the Plaintiffs. 2. In order to pay the escrow dollars to Plaintiffs, the potties and their respective counsel shall C99pera10 fully to cause the remaining balance held in the escrow account of Afty. Carol Lindsay and Atty. Gregory Reed, Per the Escrow Agreement dated August 18, 2001 shall be immediately released and paid to Atty. Joseph Hifchings as attorney for the plaintiffs"'. 3• In addition to the payment of the escrow dollars to plaintiffs, Defendant shall Pay the sum of $4,500 on or before February 15, 2003, to the Plaintiffs. . - 4• The Shankles, individually and jointly, on behalf of themselves, their heirs, executors, administrators ani$ assigns, hereby fully releases and discharges Northeastern Hott}e,lmprovemenfs of Harrisburg, Inc., its officers, directors, shayeholders, employees, agents, attorneys, assigns and successors, from any all rights, claims, actions, litigation, liabilities, damages or losses which the Shankles jointly or individually now have or may hereafter have against Northeastern Home Improvements of Harrisburg, Inc., whether known or unknown, whetter arising out of the original contract or contracts for construction and remodeling services, and/or the Workout Agreement and/or the Escrow Agreement and/or the construction performed of the Shankles• residence, and/or any other representation, agreement or warranty, and/or FROM : pupP 8 Meikle FAX N0. : 730 0214 Jan. 22 2003 12:48PM P5 the litigation brought by the Shankles to No. 2001-2430 in the Court of Common Pleas of Cumberland County, Pennsylvania. 5. Northeastern Home Improvements of Harrisburg, Inc., its officers, directors, shareholders, employees, agents, attorneys, assigns and successors, hereby fully releases and discharges the Shankles, their heirs, executors, administrators and assigns, from any all rights, claims, actions, litigation, liabilities, damages or losses which the Defendant now has or may hereafter have against Plaintiffs or either of them, whether known or unknown, Whether arising out of the original contract or contracts for construction for construction and remodeling services, and/or the Workout Agreement and/or the Escrow Agreement and/or the construction performed at the Shankles• residence, and/or any other representation, agreement or warranty, and/or the litigation brought by the Shankles to No. 2001_2430 in the Court of Common Pleas of Cumberland County, Pennsylvania. 6. Plaintiffs shall cause their legal counsel to mark this matter satisfied, settled and discontinued within 30 days of the date of this Agreement. 3 FROM : Rupp 8 Meikle FAX N0. : 730 0214 Ian. 22 2003 12:49PM p6 AND NOW, on the date above recited, the parties having read the foregoing Agreement of Stipulation, have set their hands and seals below. WITNESSES: NORTHEASTERN HOME IMPROVEMENT OF HARRISBURG, INC., Defendant Bra MARK T. KERLIN, PRESIDENT PATRICIA A. SHANKLE, Plaintiff GERALD C. SHANKLE, JR., plaintiff 4 ,-, ?.:? :?_ -„ S ._I ... ', -: T _ 1;•_ ?, ? ? {.7 . 1 _-.. Gn ° _i=) ?T? ?Il l ?' I n? ''? _„ -' ?? PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs VS. NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW : NO. 2001 - 2430 CIVIL TERM : IN ASSUMPSIT : JURY TRIAL DEMANDED REPLY TO NEW MATTER AND ANSWER TO OUNTER CLAIM NOW comes Patricia A. Shankle and Gerald C. Shankle, Jr., by and through their counsel. SAIDIS, SHUFF, FLOWER & LINDSAY, and replies to the New Matter and answers the Counter-claim of the Defendant as follows: 17. No answer required. 18. Admitted that the keys to the French doors were lost. By way of further answer, Defendant's agents lost the keys. Admitted that Defendant caused the locksmith to come to Plaintiffs' home. Denied the locksmith came three times. By way of further answer, the locksmith came on one occasion and re-keyed the lock with Plaintiffs' cooperation. 19. Denied. By way of further answer, during the period following Workout SAIDIS SHUFF, FLOWER & LINDSAY ATTOWRI&A11 AW 26 W. High Sired Carlisle, PA Agreement, Defendant's employees arrived at Plaintiffs' home to work as early as 6:30 or 6:45 a.m. and stayed as late as 8:00 or 9:00 p.m. without Plaintiffs' objection with the exception of one morning, in late October 2000, when they arrived at 6:00 a.m. and were asked to wait until the family had dressed. When Plaintiffs went to advise the workmen that they could enter the house to begin work, they found that the workmen had left the site and returned two hours later explaining that they had gone to get breakfast. 20. Admitted in part and denied in part. Denied that Plaintiffs changed the terms of the appliances to be installed. By way of further answer, all appliances had been purchased previous to the Workout Agreement by Plaintiffs and had been on hold with the local vender pending the time for installation. Admitted that Plaintiffs changed some of the specifications for cabinets because the original choices did exceed allotted amounts. By way of further answer, the final cabinet choices were provided to Defendant within 24 hours of notice by Defendant that the original choices exceeding the allowance. By way of further answer, all of the substitute cabinetry was in stock. By way of still further answer, Defendants never ordered the original cabinetry specified. Therefore, there was no further delay to the Defendant in the performance of the Workout Agreement occasioned by Plaintiffs' choice of cabinetry. 21. Denied. By way of further answer, Plaintiffs permitted Defendants' SAIDIS SNUFF, FLOWER & LINDSAY ATMt8V -ATKAW 26 W. N16h Street Carlide. PA workmen to work on all days specified in the Workout Agreement, and even Saturdays and Sundays which were not required by the Workout Agreement. By the way of still further answer, on the weekend before the Borough inspection, Defendants requested the opportunity of working on Saturday, which opportunity was provided them by Plaintiffs, but Defendant's workers never appeared. On other weekends Plaintiffs permitted Defendant's agents to work, although not required to by the work out agreement. 22. Admitted. By way of further answer, Defendant's work did not pass inspection initially, and the issues or questions raised were raised by the building inspector. 23. Admitted in part. The requirements of the Building Code Officer were met. However, the job was not complete, as the parties agreed at the time of the last visit of the Code Officer. 24. Denied. Defendant's agents, Paul Caldwell and Mark Kerlin, met with Plaintiffs and provided a "punch list" subsequent to the issuance of the occupancy permit outlining those items which remained to be completed. 25. Denied that Defendant is entitled to payment of the final escrow sum of $10,000.00. Byway of further answer, the escrowed sum is $9,000.00. By way of still further answer, Defendants did not complete its work nor have Defendants paid the delay damages set out in the Workout Agreement. 26. Admitted that the Plaintiffs have not authorized a release from the escrow account of any monies. 27. The averment in Paragraph 27 is a conclusion of law to which no SAIDIS SHUFF, FLOWER & LINDSAY ATHMHWyAKAW 26 W. High Street Gribie, PA answer is required. If an answer is required, Plaintiffs deny that they have breached the Workout Agreement with Defendant. 28. The averment in Paragraph 28 is a conclusion of law to which no answer is required. If an answer is required, Plaintiffs deny that attomey's' fees are owed to Defendant. 29. The averment in Paragraph 29 is a conclusion of law to which no answer is required. If an answer is required, Defendant is responsible for remedying costs, attomeys' fees, delay costs, penalties and any other damages. WHEREFORE, Plaintiffs pray this Honorable Court to enter judgment for Plaintiffs and against Defendant. 30. No answer required. 31. The averments in Paragraph 31 are conclusions of law to which no answer is required. If an answer is required, Plaintiffs are not estopped from claiming damages, attorneys' fees, delay damages, penalties, or any other form of damage from Defendant. WHEREFORE, Plaintiffs pray this Honorable Court to enter judgment for Plaintiffs and against Defendant. COUNTER-CLAIM - BREACH OF CONTRACT 32. No answer required. 33. The averment in Paragraph 33 contains a conclusion of law to which no answer is required. 34. The averment in Paragraph 34 contains a conclusion of law to which no SAIDIS SNUFF, FLOWER & LINDSAY ATTORlMn-AT- W 26 W. Mgh Street Carlisle, PA answer is required. If an answer is required, Plaintiffs aver they did not breach the Workout Agreement and Defendant is responsible for its breach of that Agreement including costs, attorneys' fees, delay damages, penalties, and such other relief as the Court deems just. 35. Denied that Plaintiffs incurred any additional charges totaling $2,717.46. By way of further answer, Defendant never provided the invoices attached as Exhibit "A" to Plaintiffs. By way of still further answer, the "upcharge" for the Colonial spindles was less than $100.00. The cost for the master bath, bathroom and hallway were less than those allocated for those areas. 36. The averment in Paragraph 36 contains a conclusion of law to which no answer is required. If an answer is required, it is denied that Defendant suffered damage of $2,717.46. 37. Denied. By way of further answer, Defendant is not entitled to the final escrow sum because Defendant did not complete its work under the original contract and the Workout Agreement, and because Defendant did not perform its work in a good and workmanlike manner, and because Defendant failed to complete the Agreement timely and is therefore liable for delay damages. 38. Admitted in part and denied in part. Admitted that Plaintiffs have not authorized the final release of any monies to Defendant. Denied that the work under the original contract and the Workout Agreement was completed. 39. Paragraph 39 contains a conclusion of law to which no answer is required. Denied that Plaintiffs have breached the Workout Agreement. 40. Paragraph 40 contains a conclusion of law to which no answer is SAIDIS SHUFF, FLOWER & LINDSAY ermaxMeruw 26 It. High Slreel Carlisle, PA required. Denied that Defendant has suffered damages in the sum of $10,000.00. 41. Paragraph 41 contains a conclusion of law to which no answer is required. Denied that Defendant is entitled to reasonable attorneys' fees. WHEREFORE, Plaintiffs pray this Honorable Court to dismiss Defendant's Counter- claim. SAIDIS, SHUFF, FLOWER & LINDSAY, P.C. Attorneys fctrVMnUA /) Z6 West High Street Carlisle, PA 17013 (717) 243-6222 SAIDIS SHUFF, FLOWER & LINDSAY ArroVXMAT- W 26 W. High Street Carlisle, PA PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs VS. NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW : NO. 2001 - 2430 CIVIL TERM IN ASSUMPSIT JURY TRIAL DEMANDED AND now, this_ Z-J day of T? 2001, I, Carol J. Lindsay, Esquire, of the law firm of SAIDIS, SHUFF, FLOWER & LINDSAY, Attorneys, hereby certify that I served the within Reply to New Matter and Answer to Counter-Claim by depositing same in the United States Mail, First Class, Postage Prepaid, in Carlisle, Pennsylvania, addressed to: Richard C. Rupp, Esquire RUPP AND MEIKLE 355 North 21 st Street, Suite 205 Camp Hill, PA 17011 SAIDIS SHUFF, FLOWER & LINDSAY 26 W. Will, Street Carlisle, PA SAIDIS, SHUFF, FLOWER & LINDSAY, P.C. Attorneys for Plaintiff 26 West High Street Carlisle, PA 17013 (717) 243-6222 VERIFICATION I, the undersigned, hereby verify that the statements made herein are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa. C.S. § 4904, relating to unsworn falsification to authorities. 5 )awn Patricia A. ankle Gerald C. Shankle, Jr. Date: I SAIDIS SHM, FLOWER & LINDSAY ATtO81 MAT•IAW 26 W. High Street Carlisle, PA Rupp & Meikle BY. Richard C. Rupp, Esquire Attorney I.D. No. 34832 355 N. 21" St., Suite 205 Camp Hill, PA 17011 Telephone: (717) 761-3459 Attorney for Defendant PATRICIA A. SHANKLE and : IN THE COURT OF COMMON PLEAS OF GERALD C. SHANKLE, JR., : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs : CIVIL ACTION - LAW VS. : NO. 2001-2430 CIVIL TERM NORTHEASTERN HOME n , IMPROVEMENTS OF HARRISBURG, INC. : IN ASSUMPSIT Defendant : JURY TRIAL DEMANDED NOTICE TO PLEAD TO: PATRICIA A. SHANKLE AND GERALD C. SHANKLE, JR., PLAINTIFFS c/o CAROL LINDSAY, ESQUIRE SAIDIS SHUFF FLOWER & LINDSAY 26 WEST HIGH STREET CARLISLE, PA 17033 You are hereby notified to file a written response to the enclosed Answer and new Matter and Counterclaim of Defendant within twenty (20) days from service hereof or a default judgment may be entered against you. RUPP AND I?EIKL Richard C. Rupp, Esquire Attorney for Defendant Dated: July 16, 2001 PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs VS. NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC. Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : CIVIL ACTION - LAW : NO. 2001-2430 CIVIL TERM IN ASSUMPSIT JURY TRIAL DEMANDED ANSWER. NEW MATTER AND COUNTERCLAIM AND NOW comes Northeastern Home Improvements of Harrisburg, Inc., by and through their attorneys, Rupp and Meikle and Richard C. Rupp, and avers as follows: 1. Admitted. 2. Admitted. 3. Admitted. 4. Admitted. 5. Denied. It is denied that Plaintiffs advised Defendant's agent that the primary purpose of the addition was to accomodate the Plaintiff Patricia Shankle's elderly parents who were moving into Plaintiffs' residence 1 and in particular to accomodate Patricia Shankle's father who uses a wheelchair. To the contrary, it is believed that the addition was primarily to accomodate the Plaintiffs as the parents were intended to occupy the previously existing portion of the Plaintiffs' residence. 6. Denied. It is denied that on May 6, 1999 the Defendant's agents Mark Kerlin and Jamie Walsh advised Plaintiffs that the additions contracted for would be completed by Labor Day, 1999. To the contrary, the original contract dated May 24, 1999 does not specify any completion date. Further, the Defendant's agents may have attempted to give an approximate or ballpark date of completion, but it assumed no problems or delays. 7. No answer is required as the contract speaks for itself. To the extent the averments in Paragraph 7 of Plaintiffs' Complaint require an answer, it is denied that further delays continued and by April 2000 after numerous warnings Plaintiffs advised Defendant that they considered Defendant to have breached the contract. To the contrary, the Plaintiffs could not, initially, obtain a building permit for this project. The Plaintiffs, therefore, had to seek a variance from the Camp Hill Zoning Hearing Board. After the Zoning Hearing Board granted the Zoning relief to the Plaintiffs, the Plaintiffs could obtain their necessary 2 building permit. The Defendants assisted the Plaintiffs in obtaining this necessary zoning relief to allow the Plaintiffs' project to proceed. Other delays were attributable to winter weather and to the Plaintiffs who did not want Defendant's workers on the site at various times including the holiday period. It is Admitted that Plaintiffs advised Defendant they (Plaintiffs) considered Defendant to have breached the contract. 8. Admitted. 9. Admitted. 10. No answer is required as the Agreement speaks for itself. 11. No answer is required as the Agreement speaks for itself. 12. Admitted. 13. Denied. It is denied that Defendant has not fulfilled the provisions of the workout agreement and may particulars set out on Exhibit "B" attached hereto and incorporated herein. To the contrary, Defendant has fulfilled the provisions of the workout agreement. Defendant has fulfilled all of the provisions of the workout agreement. Defendant 3 conducted a final inspection with the homeowner and the Camp Hill Borough Codes Inspector at which time all unfinished items were finished in order for the Plaintiffs to obtain an occupancy permit from the Camp Hill Borough. Further, Defendant offered to come back but it was Plaintiffs who prevented Defendants from returning to finish any minor items. It is denied that there are any uncompleted items to be completed by Defendant except for some touch up items which Defendant offered to complete but was prevented from doing so by Plaintiffs. It is denied that in particular Defendant has failed or refused to comply with Paragraph 94 which calls for the new addition to be level and match with the existing home so that a person can enter and exit the addition from the original house in a wheelchair without assistance. To the contrary, the Defendant worked meticulously to tie the addition on the first level into the existing home despite a seriously askew floor in the existing dwelling. A person in a wheelchair can enter the addition from the existing dwelling. 14. Denied. It is denied that Defendants performed the contract in a poor improper unworkmanlike manner as set forth in Exhibit "C". To the contrary, the Defendant completed the contract and the workout agreement in a proper, good and workmanlike manner and conducted a final inspection of the house with the homeowner and the Camp Hill 4 Borough Codes Officer with no further items to complete at that time except for possibly some touch up items which Defendant offered to complete but was prevented from doing so by Plaintiffs. 15. Denied. It is denied that despite reasonable extensions of time by the Plaintiff, the Defendant has failed or refused to cure the aforesaid breaches of the workout agreement. To the contrary, the Defendant is unaware of any extensions of time to cure the alleged breaches of the workout agreement. The Plaintiffs did not want the Defendant's workers on the job for any possible touch ups that might have been needed. Further the Defendant did want some items which were not contracted for as if they were to be provided under the contract.Further, the Defendant is unaware of any breaches by Defendant of the workout agreement. 16. Denied. It is denied that the reasonable costs actually incurred are or to be incurred by Plaintiffs in remedying the alleged breaches described are in excess of $25,000, the statutory limit for arbitration including attorneys fees to reasonably enforce the terms of the workout agreement, Penalties for delay, the cost to complete the project and the cost to remedy poor, improper unworkmanlike construction. To the contrary, the Defendants have not breached its workout agreement. 5 The Defendant conducted a final inspection with the homeowner and the Camp Hill Borough Codes Inspector where all final issues were raised and corrected in order for the Borough to issue the occupancy permit to the Plaintiffs. Furthermore, in the alternative, it was the Plaintiffs who breached the workout agreement by preventing Defendants from complying with the terms of the workout agreement. As such, Defendant is not be responsible for any further costs, any penalties, any delay, costs, any attorneys' fees or any payment for any alleged remedies. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs in favor of Defendant by dismissing said Complaint with prejudice. NEW MATTER Northeastern Home Improvements of Harrisburg Inc v Patricia A Shankle and Gerald C. Shankle. Jr. AND NOW comes Northeastern Home Improvements of Harrisburg, Inc., through its attorneys who avers the following New Matter: 6 COUNT I - BREACH OF CONTRACT 17. The Defendants averments in its foregoing paragraphs in its Answer, paragraphs 1 - 16, to Plaintiffs' Complaint are incorporated herein by reference as if set forth in full. 18. The keys were lost to the French Doors. Although Defendant believes the keys were delivered to Plaintiff, the Defendant caused a locksmith to come out to the Plaintiffs' home three times to try to re-key the lock but the Plaintiffs prevented the locksmith from performing this work, 19. The Plaintiffs prevented the Defendant from performing its work under the workout agreement by preventing the Defendant's workmen from being able to work in the mornings when they arrived to work. 20. After executing the workout agreement the Plaintiffs changed the terms of the cabinets and appliances to be installed because Plaintiffs' original selection exceeded their contract allowance. The Plaintiffs' change in cabinets and appliances caused downtime to Defendants, thereby further delaying Defendant in performance of the workout agreement. 7 21. Plaintiffs would not allow Defendant's workmen in to work on certain days. 22. There was a final inspection with the Plaintiffs and the Camp Hill Code Inspector where many issues or questions were raised. 23. Defendant completed any issues raised by Plaintiffs or the Camp Hill Borough Codes Inspector required to cause the occupancy permit to be issued. 24. There were no final issues remaining after this meeting with the Camp Hill Borough Codes Inspector except for possibly some touch ups. 25. Defendant is entitled to payment of the final escrow sum of'$ 10,000 by reason of Defendant's completion of its work under both the original contract and the workout agreement. 26. Despite the completion of its work under the original contract and the workout agreement, the Plaintiffs have not authorized the final release from the escrow agreement of the final $ 10,000 payment to Defendant. 8 27. For the aforesaid masons, the Plaintiffs have breached the workout agreement with Defendant. 28. For the aforesaid reasons, the Defendant is entitled to reasonable attorneys fees from Plaintiffs. 29. By reason of Plaintiffs' breach of the said workout agreement dated August 18, 2000 Defendant is not responsible for any remedying costs, attorneys' fees, delay costs or penalties or any other damages. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs for the sum of $ 10,000.00 in favor of Defendant, ordering the disbursement of said sum from the escrow fund in this matter plus attorneys fees and by dismissing Plaintiffs Complaint with prejudice. COUNT II -ESTOPPEL 30. The Defendants averments in its foregoing paragraphs 1 - 29 in its Answer and New Matter to Plaintiffs' Complaint are incorporated herein by reference as if set forth in full. 9 31. For the aforesaid reasons, the Plaintiffs are estopped from claiming damages, attorneys fees, delay damages, penalties or any other form of damages from Defendant. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs for the sum of $ 10,000.00 in favor of Defendant, ordering the disbursement of said sum from the escrow fund in this matter plus attorneys fees and by dismissing Plaintiff's Complaint with prejudice. COUNTERCLAIM -BREACH OF CONTRACT Northeastern Home Improvements of Harrisburg Inc. v. Patricia A. Shankle and Gerald C. Shankle. Jr. 32. The Defendants averments in its foregoing paragraphs in its Answer to Plaintiffs' Complaint and New Matter, paragraphs 1 - 31, are incorporated herein by reference as if set forth in full. 33. For the aforesaid reasons, Plaintiffs breached the workout agreement with Defendant. 10 34. By reason of Plaintiff's breach of the said workout agreement dated August 18, 2000, Defendants are not responsible for any remedying costs, attorneys' fees, delay costs or penalties or any other damages. 35. Plaintiffs incurred additional charges by items not covered by the original contract or by items which exceeded their allowances in the total sum of $ 2,717.46 which have not been paid by Plaintiffs to Defendant. A copy of Defendant's invoice to Plaintiffs is incorporated herein as Exhibit " A " and made a part hereof as if set forth in full. 36. By reason of Plaintiffs' failure or refusal to make payment of the aforesaid charges, Defendant has suffered damages in the sum of'$2,717.46. 37. Defendant is entitled to payment of the final escrow sum of $ 10,000 by reason of Defendant's completion of its work under both the original contract and the workout agreement and the escrow agreement. 38. Despite the completion of its work under the original contract and the workout agreement, the Plaintiffs have not authorized the final release 11 from the escrow agreement of the final $ 10,000 payment to Defendant. 39. For the aforesaid reasons, the Plaintiffs have breached the workout agreement with Defendant. 40. For the aforesaid reasons, the Defendant has suffered damages in the sum of $ 10,000.00. 41. For the aforesaid reasons, the Defendant is entitled to reasonable attorneys fees from Plaintiffs in accordance with the workout agreement. WHEREFORE, Defendants pray this Honorable Court to enter judgment against Plaintiffs for the sum of $ 12,717.46 in favor of Defendant, ordering the disbursement of said sum from the escrow fund in this matter plus attorneys fees and by dismissing Plaintiff's Complaint with prejudice. 12 By Richard C. Rupp Attorney for Defendant Attorney I.D. #34832 355 North 21 st Street, Suite 205 Camp Hill, PA 17011 (717) 761-3459 13 RUPP AND MEIKLE VERIFICATION I, Mark Kerlin, verify that the facts set forth in the foregoing Pleading are true and correct to the best of my knowledge, information and belief. I am authorized to make this Verification as President of the Defendant on behalf of the Defendant. The undersigned understands that false statements herein are made subject to the penalties of 18 Pa. C.S.A. 4904 relating to unsworn falsification to authorities. Date: ) I / L ? o/ I Mark Kerlin, President Northeastern Home Improvements of Harrisburg, Inc. NORPIEASTERNHOME/MPROVEMEN750FMARR4SYX /NC. 25 NORTH ENOtA DRIVE, SUIT: 106 ENOLA, PA 17025 PHONE: (717) 732-3600 FAX: (717) 732-3627 September 12, 2000 Patrcia & Gerald Shankle 1915 Lenox Street Camo Hil , PA ' 7011 The amount due for the colon:a: spindles, rails and posts for the front deck ;s as follows: $1,286.00 Thank you, Northeastern Home Improvements C K L4 t v3 L'i A NORTHEASTErW HOME/MPROVEMAENTSOFMRR/SBURG6INC 125 NORTH ENCLA DRIVE, SUITE 106 ENOLA.PA 17025 PHONE: (717) 732-3600 FAX: (717) 732-3627 September 27, 2000 Patricia & Gerald Shanile 1915 Lenox Street Camp Hill, PA 17011 As per the workout agreement, total funcs allocated fcr the Master Bath. 2ndary Bath ar d Bathroom/Bedroom/Hall c oset lights were: $4,460.24. Total of items selected and installed equals: $5,891.70. Balance due Northeastern Home Improvements is: $1,431.46. Z CERTIFICATE OF SERVICE I, Richard C. Rupp, Esquire, do hereby certify that I am serving a true and correct copy of the foregoing Answer, New Matter and Counterclaim upon the person(s) named below by placing the same in the United States Mail, First Class, Postage Prepaid on the date stated below. Carol Lindsay, Esquire Saidis, Shuff, Flower & Lindsay 26 West High Street Carlisle, Pa 17033_--, kichard C. R pp, Esqui Attorney I.D.# 34832 355 North 21st Street, Suite 303 Camp Hill, Pennsylvania 17011 (717) 761-3459 Dated: V 10 L)f PRAECIPE FOR LISTING CASE FOR TRIAL (Must be typewritten and submitted in duplicate) TO THE PTARY OF CUMBERLAND COUNTY Please list the following case: (Check one) ( X ) for JURY trial at the next term of civil :Court: - - -CASE - - ( ) for trial without a jury, CAP--T-ION ------------------------- (entire caption must be stated in full) - - - - - - - (check one) ( X) Civil Action - Law Patricia A. Shankle and Gerald C. Shankle, Jr., (Plaintiff) VS. Northeastern Home Improvements of Harrisburg, Inc., VS. (Defendant) . ( ) Appeal from Arbitration (other) The trial list will be called on and August 13, 2002 Trials comnence on September 9, 2002 Pretr'als will be held on August 21, 2002 (Briefs are due 5 days before p- re ri (The party listing this case for trial shall Provide forthwith a copy of the praecipe to all counsel, pursuant to local Rule 214.1.) NO. 2001-2430 Civil Indicate the atto=e 19 Y who will try case for the party who files this Joseph L. Hitchings, Esquire Praeclpe: Indicate trial counsel for other parties if known; Richard C. Rupp, Esquire This case is ready for trial. Signed: Date: July 3, 2002 Print Name: h Attorney for: Patricia A. and Gerald C. Shankle,Jr. PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs vs. NORTHEASTERN HOME IMPROVEMENTSOF HARRISBURG, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW 01-2430 CIVIL ORDER AND NOW, this Z/ a day of August, 2002, following pretrial conference, it is ordered and directed that this matter is continued from the September term. All discovery in this case shall be completed on or before October 31, 2002. Trial without jury shall commence on Wednesday, December 11, 2002, at 9:30 a.m. in Courtroom Number 4, Cumberland County Courthouse, Carlisle, PA. BY THE COURT, Kev' A. Hess, J. Joseph L. Hitchings, Esquire For the Plaintiffs /? o p i e 0.1) ,,**Richard Rupp, Esquire -0 a R?S For the Defendant Court Administrator Am VW ?IASNN3Gy?ry? KINNO SZ:1141y 1ZSAVZO PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs vs. NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW 01-2430 CIVIL IN RE: PRETRIAL CONFERENCE Present at a pretrial conference held this date were Joseph L. Hitchings. Esquire, attorney for the plaintiffs, and Richard Rupp, Esquire, attorney for the defendant. Counsel have agreed to set a discovery deadline for the end of October and to proceed to a nonjury trial on December 11 °i. An order has been entered of even date herewith reflecting this understanding. August 21. 2002 Joseph L. Hitchings, Esquire For the Plaintiffs Richard Rupp, Esquire For the Defendant Court Administrator :rim '41 Kevi . Hess. J. VINVAIASMSd A1Nfl'.:(.) rNN.M99 Ono li:l,n izonvzo J0 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA Patricia A. Shankle and Gerald C. Shankle, Jr Plaintiffs vs. Northeastern Home Improvements of Harrisburg, Inc. Defendant ORDER No.: No. 2001-2430 Assumpsit- Jury Trial Demanded Action - Law AND NOW, this 24th day of May, 2004, following hearing on Plaintiffs' Petition to Enforce Settlement Agreement, it is hereby ordered and decreed that the terms of the Settlement Agreement are adopted as an Order of this Court, and Defendant is directed to pay to Plaintiffs the sum of $4,500.00 within 30 days from receipt of this order, and the escrow agents are hereby authorized to immediately release to Plaintiffs or their counsel any and all funds held by them pursuant to the Escrow Agreement entered into by the parties. By the Court: X. A. Hess ' /i -V/'o r U 7o-W qG annb ?,,., } , `PA (:) G O ?-? T 1 T Z T ' n ; ?_: Y ^.1 ; G - r r --?? :, n '!l 'fi ?? ? N ? .. W .. IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA ?PATRICIA A. SHANKLE AND GERALD C. : CASE NO. 2001-2430 SHANKLE, JR. ; Plaintiffs : JURY TRIAL DEMANDED VS. CIVIL ACTION - LAW NORTHEASTERN HOME IMPROVEMENTS OF HARRISBURG, INC. Defendant , ORDER OF COURT AND NOW, this Z Y' day of / 2004, upon consideration of the Motion of Richard C. Rupp, Esquire, Movant, in the above-captioned action: IT IS HEREBY ORDERED AND DECREED: That upon Petition of Richard C. Rupp, Richard C. Rupp and Rupp and Meikle are hereby withdrawn as legal counsel for the Defendant, Northeastern Home Improvements of Harrisburg, Inc. BY THE COURT: -A4 s/.zy; o s? J. ? i N C7 _ ?-: ;C' -n -r. _? l J ?l l r -r. rl . - iC .' ( '"-l. r -r 1 __ :i"J _?..-fl -1 -j N .1 W IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PATRICIA A. SHANKLE AND GERALD C. : CASE NO. 2001-2430 SHANKLE, JR. Plaintiffs : JURY TRIAL DEMANDED VS. : CIVIL ACTION - LAW NORTHEASTERN HOME IMPROVEMENTS : OF HARRISBURG, INC. Defendant ; MOTION NOW COMES, Richard C. Rupp, Esquire, your Movant, who avers as follows: 1. The law firm that your Movant is associated with is Rupp and Meikle, P.C., with principal offices at 355 N. 21" St., Ste. 205, Camp Hill, PA 17011. 2. Rupp and Meikle represented Northeastern Home Improvements in a civil action which settled shortly before trial whereby the President of Northeastern Home Improvements, Mark Kerlin, consented to a settlement which was communicated both to the Judge and to opposing counsel, Joseph Hatchings. 3. When Joseph Hatchings finalized and drafted a Settlement Stipulation for the Court for the judgment amount, Mr. Kerlin failed or refused to execute such Stipulation. 4. Further, in both the civil action of Shankles v. Northeastern and other civil actions, Richard C. Rupp, your Movant, and his law firm, Rupp and Meikle, were not paid despite billings that exceeded $12,000 and neither has been asked to perform any further representation on any Northeastern matter and the fact that we were advised that Mr. Gregory Reed was taking over representation of Northeastern, we assumed It was with respect to all legal actions. 5. Richard C. Rupp and Rupp and Melkle have several conflicts therefore from the above recited facts: A. There is a conflict of interest as Rupp and Meikle Intends to file suit against Mark Kerlin and Northeastern Home Improvements of Harrisburg, Inc., to collect on its billings. B. The settlement was recommended by Richard C. Rupp and Rupp and Meikle and was agreed to by Mark Kerlin and Mark Kerlin authorized Richard C. Rupp and Rupp and Melkle to communicate such settlement to both the Judge and Attorney Hitchings, who was opposing counsel, in order that the trial would not occur and a settlement would occur. C. There would be a conflict of Interest as Richard C. Rupp and Rupp and Meikle will have to confirm the settlement and therefore enter a compromising position with respect to its prior client, Northeastern. 6. Richard C. Rupp and Rupp and Meikle are of the understanding that we are no longer counsel for any Northeastern matter. If there is any confusion or dispute as to this issue, we are filing this Petition in the Shankle matter to allow the removal of Richard C. Rupp and Rupp and Meikle as legal counsel for Defendant and thereby avoid the conflicts of Interests recited above. 7. Attorney Richard Rupp left a message with Attorney Joseph Hitching's office but had not received a response as to his consent in filing this Petition. 2 WHEREFORE, Richard C. Rupp, your Movant, respectfully requests that the entry of appearance on behalf of Richard C. Rupp and Rupp and Meikle allowed to be withdrawn as legal counsel for the Defendant, Northeastern Home Improvements of Harrisburg, Inc., such that Richard C. Rupp and Rupp and Meikle will not have to represent at the hearing for enforcement of the settlement by the Defendant. RUPP AND MEIKLE By. Dates: VA414 r Attorneys for Richard Rupp, Esquire, Herbert Rupp, Esquire, and Col Frederick E. Gerber, 11 3 Atty. I.D. No. 34832 355 N. 21" St., Ste. 205 Camp Hill, PA 17011 717-761-3459 rf A0 ;.f CERTIFICATE OF SERVICE AND NOW, day thisd? of May, 2004, I hereby certify that 1 have served a copy of the within document on the following by depositing a true and correct copy of the some in the U. S. Mail at Harrisburg, Pennsylvania, postage prepaid, addressed to: 4 Joseph L. Hitchings, Esquire 203 West Caracas Avenue Suite 201 Hershey, PA 17033 n Eg T rTl 1, y f? 1 : r Ti rrl C '.7 • i PATRICIA A. SHANKLE and GERALD C. SHANKLE, JR., Plaintiffs vs. NORTHEASTERN HOME IMPROVEMENTSOF HARRISBURG, INC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW 01-2430 CIVIL IN RE: MOTION TO WITHDRAW AS COUNSEL ORDER AND NOW, this /1' day of May, 2004, a rule is issued on the parties to show cause why the relief requested in the within motion to withdraw as counsel ought not to be granted. This rule returnable Monday, May 24, 2004, at 11:00 a.m. in Courtroom Number 4, Cumberland County Courthouse, Carlisle, PA. BY THE COURT, /Joseph L. Hitchings, Esquire For the Plaintiffs 'Richard Rupp, Esquire For the Defendant Am Is Hess,' I O? r 65,??-O '430P06\eo.,S?eRs 90me- lmprovemenTs Curtis R. Long Prothonotary Q?ffice of the protbonotarr cumberlanb CountP Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor i _ 2 CIVIL TERM ORDER OF TERMINATION OF COURT CASES H DAY OF NOVEMBER 2007 AFTER MAILING ING TICS OF AND NOW THIS 5T ItECENING NO RESPONSE - THE ABOVE WITH PRENDICE IN ACCORDANCE WITH PA INTENTION TO PROCEED AND CASE IS HEREBY TERMINATED R C P 230.2. BY THE COURT, CURTIS R. LONG PROTHONOTARY rthouse Square - Carlisle, Pennsylvania 17013 - (717) 240-6195 - Fax (717) 240-6573 One Cou