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HomeMy WebLinkAbout11-8316C,/)) SERRATELLI, SCHIFFMAN & BROWN, P. C. , Paige Macdonald-Matthes, Esquire 1 h ?..8 Supreme Court ID No. 66266 =-? 2080 Linglestown Road Harrisburg, PA 17110 2 rn - g; (717) 540-9170 (717) 540-5481 facsimile _ ='-n Email: PMacdonald-Matthesna.ssbc-law.com Attorneys for Plaintiff, Brandon C. Powers .. BRANDON C. POWERS, : IN THE COURT OF COMMON PLEAS . CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF , V. , DOCKET No. -316 0,,vilTerwx VERONICA G. AREVALO AND VARONIo D. CIVIL ACTION-LAW HERNANDEZ , DEFENDANTS CONFESSION OF JUDGMENT FOR MONEY Pursuant to the authority contained in the warrant of attorney, a copy of which is attached to the Complaint filed in this action, I appear for DEFENDANTS and confess judgment in favor of the Plaintiff and against the Defendants as follows: 5/8/2011 ASSET PURCHASE AGREEMENT ("APA") June 2011- $1,650.00 July 2011- 1,650.00 August 2011- 1,650.00 September 2011- 1,650.00 October 2011- 1,650.00 $8,250.00 PLUS Attorney's Commission 1,000.00 TOTAL DUE UNDER APA $9,250.00, plus amounts advanced by Plaintiff in collection of the Debt pursuant to the terms of the APA, reasonable attorney's fees and costs. *a7, 50 PA p1TY Of 5a 07 P# a"7f5 Oo4tbe 5/8/2011 AGREEMENT OF SUBLEASE ("AOS") Rent for October 2011- $3,240.00 Utilities Past Due Trash (Pro-rated) 977.29 Past Due Water and Sewer (Pro-rated) 640.21 $4,857.50 PLUS Attorney's Commission (10%) 485.75 TOTAL DUE UNDER AOS $5,343.25, plus amounts advanced by Plaintiff in collection of the Debt pursuant to the terms of the APA, reasonable attorney's fees and costs. TOTAL JUDGMENT: $14,593.25 Date: November 2, 2011 Respectfully Submitted, Paige Macdonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road Suite 201 Harrisburg, PA 17110 (717) 540-9170 Attorney for Plaintiff SERRATELLI, SCHIFFMAN & BROWN, P. C. Paige Macdonald-Matthes, Esquire Supreme Court ID No. 66266 2080 Linglestown Road Harrisburg, PA 17110 (717) 540-9170 (717) 540-5481 facsimile Email: PMacdonald-Matthesassbc-law com Attorneys far Plaintiff, Brandon C. Powers BRANDON C. POWERS, 851 KIEHL DRIVE LEMOYNE, PA 17043 PLAINTIFF " FILED-OFFICE T RE PROTHONOTARY 211 Nov -4 PM 1: 14 CUMBEENRLAND COUNTY : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA V. VERONICA G. AREVALO AND VARONIO D. HERNANDEZ 640 LOPAx ROAD HARRISBURG, PA 17112 DEFENDANTS : DOCKET No. 2011-8316 CIVIL TERM . CIVIL ACTION-LAW CONFESSION OF JUDGMENT FOR EJECTMENT Pursuant to the authority contained in the warrant of attorney, a copy of which is attached to the Complaint filed in this action, I appear for DEFENDANTS and confess judgment in favor of the Plaintiff and against the Defendants for the possession of the real property described as follows: 700 Valley Street, East Pennsboro Township, Cumberland County, PA, Tax Parcel No. 09-12-2993-073. Respectfully Submitted, Date: November 3, 2011 Paige Macdonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110 (717) 540-9170 ;i1 dOP`L Attorney for Plaintiff 60t Il k 7 1 ?.21t .Z In `S?- S' N 1 t ? SERRATELLI, SCHIFFMAN & BROWN, P. C. -t r Paige Macdonald-Matthes, Esquire ' Supreme Court ID No. 66266 2080 Linglestown Road `s Harrisburg, PA 17110 (717) 540-9170 - - 4 a ` r (717) 540-5481 facsimile era ' Email: PMacdonald-Mattheskssbc-law. com ' Attorneys for Plaintiff, Brandon C. Powers BRANDON C. POWERS, : IN THE COURT OF COMMON PLEAS . CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF v. DOCKET No. VERONICA G. AREVALO AND VARONIO D. CIVIL ACTION-LAW HERNANDEZ DEFENDANTS COMPLAINT IN CONFESSION OF JUDGMENT Plaintiff files this Complaint pursuant to Pa.R.Civ.P. 2951 and Pa. R.Civ. P. 2971 for judgment by confession in assumpsit and in ejectment, and in support thereof avers as follows: 1. Plaintiff, Brandon C. Powers, an adult individual who resides at 851 Kiehl Drive, Lemoyne, Cumberland County, Pennsylvania, 17043. 2. Defendant, Veronica G. Arevalo, is an adult individual who resides at 640 Lopax Road, Harrisburg, Dauphin County, Pennsylvania, 17112. 3. Defendant, Varonio D. Hernandez, an adult individual who resides at 640 Lopax Road, Harrisburg, Dauphin County, Pennsylvania, 17112. 4. Defendant Arevalo and Defendant Hernandez are hereinafter collectively referred to as "Defendants." COUNT I- CONFESSION OF JUDGMENT IN ASSUMPSIT (Pa. RCiv. P. 2951) 5. On or about May 8, 2011, Plaintiff and Defendants entered into an Asset Purchase Agreement ("APA") for Plaintiffs business consisting, inter alia, of all equipment, inventory and fixtures attendant to Plaintiff's pizza business located at 700 Valley Road, Enola, Cumberland County, PA for the purchase price of $140,000 (hereinafter "Purchase Price"), with $15,000 paid as a down payment and monthly installments due in the amount of $1,650.00 until the Purchase Price is paid in full. A true and correct copy of the APA which authorizes, in paragraph 6, judgment by confession in assumpsit in the event of a default in the payment of any installment due there under is attached hereto as Exhibit "A." The original copy of the APA is in Plaintiff's possession and control. 6. On or about May 8, 2011, Plaintiff and Defendants also entered into a second agreement, to wit: an "Agreement of Sublease" (hereinafter "AOS") memorializing Defendants' agreement to sublease Plaintiff's lease with Giuseppe Barone and Giovanni Barone for commercial lease property located at 700 Valley Road, Enola, Cumberland County, PA. A true and correct copy of the AOS which authorizes, in paragraph 8.2 et seq., judgment by confession in assumpsit in the event of a default in the payment of any rent or any other charge or payment due there under is attached hereto as Exhibit "B." The original copy of the AOS is in Plaintiff's possession and control. 7. Contrary to the terms and provisions of the APA, Defendants have failed to make the monthly payments due under the APA for the months of June 2011, July 2011, August 2011, September 2011 and October 2011. 8. Defendants' failure to make payment pursuant to the terms of the APA when due 2 constitutes a default under the APA and specifically paragraph 6.1 of the same. 9. Contrary to the terms and provisions of the AOS, Defendants have failed to pay rent for the months of September 2011 and October 2011. 10. Defendants' failure to pay rent when due constitutes a default under the terms of the AOS and specifically paragraph 8. 1.1 of the same. 11. Plaintiff has notified Defendants of their default under both the APA and the AOS and demanded payment. A true and correct copy of Plaintiff's October 11, 2011, demand letter, together with a signed copy of the Certified Mail Return Receipt Card is attached hereto and collectively marked as Exhibit "C". 12. Pursuant to the terms of the APA, and specifically, paragraph 6 of the same, Plaintiff presently possesses the right to demand payment by Defendants on all amounts due for the unexpired balance of the term of the APA, together with all other charges and expenses. 13. Pursuant to the terms of the AOS, and specifically, paragraph 8.2.1 of the same, Plaintiff presently possesses the right to demand payment by Defendants on all amounts due for the unexpired balance of the Lease term of the APA, together with all other charges and expenses. 14. Under the terms of the APA, due to Defendants' default, Plaintiff is also entitled to recover all costs of collection, together with attorney's fees in the amount of ten percent (10%) of the judgment or $1,000, whichever is greater. 15. Under the terms of the AOS, due to Defendants' default, Plaintiff is also entitled to recover interest and costs, together with an attorney's commission of ten percent (10%) thereof. 3 } 1 16. As of the date of default on the APA, the following amounts are now due Plaintiff: June 2011- $1,650.00 July 2011- 1,650.00 August 2011- 1,650.00 September 2011- 1,650.00 October 2011- 1,650.00 $8,250.00 PLUS Attorney's Commission 1,000.00 TOTAL DUE UNDER APA $9,250.00, plus amounts advanced by Plaintiff in collection of the De bt pursuant to the terms of the APA, reasonable attorney's fees and costs. 17. As of the date of default on the AOS, the following amounts are now due Plaintiff. Rent for October 2011- $3,240.00 Utilities Past Due Trash (Pro-rated) 977.29 Past Due Water and Sewer (Pro-rated) 640.21 PLUS $4,857.50 Attorney's Commission (10%) 485.75 TOTAL DUE UNDER AOS $5,343.25, plus amounts advanced by Plaintiff in collection of the Debt pursuant to the terms of the APA, reasonable attorney's fees and costs. 18. The judgment sought herein is not against a natural person in connection with a consumer credit transaction. 19. The APA has not been assigned. 20. The AOS has not been assigned. 4 21. Judgment has not been entered in any jurisdiction on the APA authorizing judgment by confession. 22. Judgment has not been entered in any jurisdiction on the AOS authorizing judgment by confession. WHEREFORE, Plaintiff, as authorized by the confession of judgment clause contained in the Asset Purchase Agreement and the Agreement of Sublease, requests judgment in assumpsit to be entered against Defendants Veronica G. Arevalo and Varonio D. Hernandez, jointly and severally, in the total sum of 14,593.25, plus any additional attorney's fees and costs authorized by the warrant of attorney. COUNT II- CONFESSION OF JUDGMENT IN EJECTMENT (PA. RCiv. P. 2971) 23. On or about May 8, 2011, Plaintiff and Defendants entered into an Asset Purchase Agreement ("APA") for Plaintiff's business consisting, inter alia, of all equipment, inventory and fixtures and commercial lease agreement attendant to Plaintiff's pizza business located at 700 Valley Road, Enola, Cumberland County, PA for the purchase price of $140,000 (hereinafter "Purchase Price"), with $15,000 paid as a down payment and monthly installments due in the amount of $1,650.00 until the Purchase Price is paid in full. A true and correct copy of the APA which authorizes, in paragraph 6, judgment by confession in ejectment in the event of a default in the payment of any installment due thereunder is attached hereto as Exhibit "A." The original copy of the APA is in Plaintiff's possession and control. 24. On or about May 8, 2011, Plaintiff and Defendants also entered into a second agreement, to wit: an "Agreement of Sublease" (hereinafter "AOS") memorializing Defendants' 5 agreement to sublease Plaintiff's lease with Giuseppe Barone and Giovanni Barone for commercial lease property located at 700 Valley Road, Enola, Cumberland County, PA (hereinafter "Lease Premises"). A true and correct copy of the AOS which authorizes, in paragraph 8.2 et seq., judgment by confession in ejectment in the event of a default in the payment of any rent or any other charge or payment due there under is attached hereto as Exhibit "B." The original copy of the AOS is in Plaintiff's possession and control. 25. Contrary to the terms and provisions of the APA, Defendants have failed to make the monthly payments due under the APA for the months of June 2011, July 2011, August 2011, September 2011 and October 2011. 26. Defendants' failure to make payment pursuant to the terms of the APA when due constitutes a default under the APA and specifically paragraph 6.1 of the same. 27. Contrary to the terms and provisions of the AOS, Defendants have failed to pay rent for the months of September 2011 and October 2011. 28. Defendants' failure to pay rent when due constitutes a default under the terms of the AOS and specifically paragraph 8. 1.1 of the same. 29. Plaintiff has notified Defendants of their default under both the APA and the AOS and demanded payment. A true and correct copy of Plaintiff's October 11, 2011, demand letter, together with a signed copy of the Certified Mail Return Receipt Card is attached hereto and collectively marked as Exhibit "C". 30. Pursuant to the terms of the APA, and specifically, paragraph 6 of the same, as a direct and proximate result of Defendants' default, Plaintiff presently possesses the right to confess judgment for possession and ejectment of the Defendants from the Lease Premises. 6 31. Pursuant to the terms of the AOS, and specifically, paragraph 8.2.4 of the same, as a direct and proximate result of Defendants' default, Plaintiff presently possesses the right to confess judgment in ejectment against Defendants and a Writ of Possession may issue forthwith without any prior Writ or proceedings whatsoever. 32. Under the terms of the APA, due to Defendants' default, Plaintiff is also entitled to recover all costs of collection, together with attorney's fees in the amount of ten percent (10%) of the judgment or $1,000, whichever is greater. 33. Under the terms of the AOS, due to Defendants' default, Plaintiff is also entitled to recover interest and costs, together with an attorney's commission of ten percent (10%) thereof. 34. As of the date of default on the APA, the following amounts are now due Plaintiff: June 2011- $1,650.00 July 2011- 1,650.00 August 2011- 1,650.00 September 2011- 1,650.00 October 2011- 1,650.00 $8,250.00 PLUS Attorney's Commission 1,000.00 TOTAL DUE UNDER APA $9,250.00, plus amounts advanced by Plaintiff in collection of the Debt pursuant to the terms of the APA, reasonable attorney's fees and costs. 35. As of the date of default on the AOS, the following amounts are now due Plaintiff: Rent for October 2011- $3,240.00 7 Utilities Past Due Trash (Pro-rated) 977.29 Past Due Water and Sewer (Pro-rated) 640.21 $4,857.50 PLUS Attorney's Commission (10%) 485.75 TOTAL DUE UNDER AOS $5,343.25, plus amounts advanced by Plaintiff in collection of the Debt pursuant to the terms of the APA, reasonable attorney's fees and costs. 36. The judgment sought herein is not against a natural person in connection with a consumer credit transaction. 37. The APA has not been assigned. 38. The AOS has not been assigned. 39. Judgment has not been entered in any jurisdiction on the APA authorizing judgment by confession. 40. Judgment has not been entered in any jurisdiction on the AOS authorizing judgment by confession. WHEREFORE, Plaintiff, as specifically authorized by the confession of judgment clause contained in the Asset Purchase Agreement and the Agreement of Sublease, requests that judgment in ejectment be entered against Defendants Veronica G. Arevalo and Varonio D. Hernandez, jointly and severally, for the immediate recovery of the Lease Premises, and a Writ 8 of Possession be entered against the Defendants for the Lease Premises forthwith. Respectfully Submitted, Paige M caonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road Suite 201 Harrisburg, PA 17110 (717) 540-9170 Attorney for Plaintiff Date: November 2, 2011 9 1, Brandon C. Powers, verify that the statements made in the foregoing Complaint in Confession of Judgment are true and correct. .1 understand that false statements herein are made subject to the penalties of 18 Pa. C.S. Section 4904, relating to unsworn falsification to authorities. Date: h?, ?, ao1 r Brandon C. Powers AFFIDAVIT OF NON-MILITARY SERVICE I, Paige Macdonald-Matthes, Esquire, being duly sworn according to law, depose and say that I am the attorney for Plaintiff, Brandon C. Powers and I am authorized to make this affidavit on his behalf. I hereby affirm that to the best of my knowledge, Varonio D. Hernandez, is not currently serving in the United States Military, nor in any State or Territory thereof or its allies, as defined in the Soldiers' and Sailors' Civil Relief Act of 1940 and the amendments thereto. Respectfully Submitted, Sworn to and subscribed before me this Z N day of1Vo?l?mh Zd1/ )OItary Pu lic COMMONWEALTH F PENNSYLVANIA NOTARIAL SEAL Debra A. Evangelisti, Notary Public Susquehanna Township, Dauphin County My commission exnires May 07, 2012 Paige Macdonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road Suite 201 Harrisburg, PA 17110 (717) 540-9170 Attorney for Plaintiff AFFIDAVIT OF NON-MILITARY SERVICE I, Paige Macdonald-Matthes, Esquire, being duly sworn according to law, depose and say that I am the attorney for Plaintiff, Brandon C. Powers and I am authorized to make this affidavit on his behalf. I hereby affirm that to the best of my knowledge, Veronica G. Arevalo, is not currently serving in the United States Military, nor in any State or Territory thereof or its allies, as defined in the Soldiers' and Sailors' Civil Relief Act of 1940 and the amendments thereto. Respectfully Submitted, Sworn to and subscribed before me this /4 day of Notary Public COMMONWEALTH OF PENNSYLVANIA NOTARIAL SEAL FDebra A. Evangelisti, Notary Public ehanna Township, Dauphin County ommission expires May 07, 2012 Paige Macdonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road Suite 201 Harrisburg, PA 17110 (717) 540-9170 Attorney for Plaintiff ASSET PURCHASE AGREEMENT THIS ASSET PURCHASE AGREEMENT made this ? day of May 2011, between: lf.ry Road Yteatrhuh?amt, Inc., a Pemtsylvama corporation with a mailing address of 383 North 26 Sh"I, Camp HHkPA 17011(collectively,"Suller ) Va roaka G. Are"do and'Vaaru& D. Hernandez, adult individuals with a mailing address of 640 Lopax Road, Harrisburg, PA 17112 (collectively, Muyte). BACKGROUND Seller is engaged in the restaurant business at a facility located in Enola, Pennsylvania ("Business"). Buyer has negotiated contemporaneously with Brandon C. Powers for a sublease of real estate associated with the business. Seller is interesting in selling and Buyer is interested in purchasing all other assets of the Business. THE PARTIES HERETO, INMND1NG TO BE LEGALLY BOUND HEREBY, AGREE AS FOLLO'W'S: L SALE, PURCHASE AND ASSUMPTION. Seller agrees to sell and Buyer agrees to purchase all assets of the Business as mare My described and set forth in Exhibit "A", attached hereto and made a part hereof. It is hereby apwsly uulezstood and agreed that the Assets ere to be transferred and conveyed to Buyer as above speeif ed, in the condition existing at the time of this Agreement, by good and sufficient bill of sale, and other necessary documents oftransfer, free and clear of all liens, charges, encumbrances, debts, liabilities and obligations whatsaaver, except for those which we or arise cart of obligations which are ogxessly assumed by Buyer hereunder, and that such transfer of title shall occur upon the payment by Buyer of the complete purchase price by cash or certified funds payable to Seller on or before May 159 2017, so long as Buyer has not defaulted on the terms of the Sublease Agreement with Brandon C. Powers executed contemporaneously with this docutment. Buyer is aware of liens on personal property to be transferred upon final payment to Seller and that Seller will satisfy those hens contemporaneously with final payment to Seller by Buyer. 2. PURCHASE PRICE. The total purchase price for the Assets shall be ONE HUNDRED FORTY THOUSAND AND 00/100 ($140,000.00) U.S. DOLLARS ("Pulse Price'). Buyer shall pay to Seller a down payment FIF'I'EBN THOUSAND. AND 00/100 ($15,000.00) U. S. DOLLARS in cash or ceatified funds at Closing ("Down Payment') amd monthly payrnents thereafter in the anouuit of $1,650.00 due on or bedbre the first day ofawh month mmmil the balance of the Purchase Price is paid in l`ull.. 3. CLOSING. "Closing" shall mean the meeting of the, parties or other occur .e at which the sale, assignment, transfer and, delivery of the Assets by Seller to Buyer, the payment of the Down Payment (as defined above). The Closing shall take place on or before May 15, 2011. PLAINTIFF'S EXHIBIT a a. CONDff1ONS TO CLOSING. This Agreement is subject to the satisfaction of Buyer. Buyer will receive upon final, payment to Seller a duly eututed Bill of Sale; 4. REPItT ENTATIONS AND WARRANTTFS. As a material inducement to the parries to enter into thus Agreeme nt and to close hereunder, the patties make the following rcpmesartations and wairwdm as of the date hereof and as of the date of Closing. a. Aatixorby. Buyer and Seller each have full power, right snd W&Mty to MUT MAD and perform their respective obligations under this Agmal b. Good Tide. Seller ovens ou miff and has good, indefeasible and awAm able title to all the Assets wbich will be able to delivered conmanporanmsiy with final payment from Buyer, all property free acid clear of all liens, security mtdrem mortgages, pledges, miens, prior assigorroU encumbrances and claims of any kind, unless oft rw= stated in this Agreement C. No 1<.itig dO n, TrnasscdM Not z HMCh. There is no litigation, pr+ooeedit1A demands, letters, claims or investigation pending or t neatened against the parties or relating to or affecting the Business or any of the Assets to be purchased by Buyer hereunder. There is no litigation pending, or to the knowledge of the Seller, threatened, between or among Seller against it by its employees. d. Amimpt>on of risk of Lem Seller assumes file risk of loss, damage or deshicton resulting from fire or other casualty of the Business or assets themo4 to the time of Closing, and Buyer shall have the right to terminate this Agreemrnt if the Business is Werruptod prier tQ be=m of loss, destruction or damage due to fire or other casualty. If loss, destruction or damage due to fire or other casualty occurs prior to Closing, the purchase price shall be adjusted to reflect the loss. 5. INDEMNIFICATION. Subject to the limitations in this section, from and aver the closing, the parties shell hold harmless, indemnify and defend each other, and their respective officers, directors, employees, stockholders, agents and affiliates, from and'against any and all damages, claims, losses, liabilities and expenses (including without limitation costs of investigation and reasonable attorneys' fees and e q mum) or diminution of vdlere, whether or not involving a third-party claim, which may arise out of any breach by the other party of any representation or warmty in this Agreancmt or in any certificate or documents delivered pursuant to this Agreement, and any other breach or violation by the other party of any covenants of this Agreement 6. DEFAULT. ALL RIGHTS AND REMEDIES OF SELLER INCLUDED IN THIS AGREEMENT ARE BE CUMULATIVE AND DO NOT EXCLUDE ANY OTHER RIGHTS OR REMEDIES ALLOWED BY LA't7V'. BUYER COVENANTS AND AGREES THAT: 1. IF BUYER FAILS, NEGLECTS OR REFUSES TO PAY ANY INSTALLMENT OF AT THE TIME AND IN THE AMOUNT AS HEREIN PROVIDED, OR TO PAY ANY OTHER MONIES AGREED BY IT TO BE PAID PROMPTLY WHEN AND AS THE SAME SHALL BECOME DUE AND PAYABLE UNDER THE TERMS HEREOF, AND IF ANY SUCH DEFAULT SHOULD CONTINUE FOR. A PERIOD OF MORE THAN TEN (10) DAYS; 2. IF BUYER SHALL, ABANDON OR VACATE THE PROPERTY OR FAIL TO KEEP THE PROPERTY CONTINUOUSLY AND UNITERRUPTEDLY OPFN FOR BUSINESS EACH BUSINESS DA'Y' FOR AT LEAST 5 DAYS A WEEK OR SHALL FAIL, NEGLECT OR REFUSE TO KEEP AND PERFORM ANY OF THE OTHER COVENANTS, CONDMONS, STIPULATIONS OR AGRREMENTS HEREIN CONTAINED AND COVEENANTED AND AGREED TO BE KEPT AND PERFORMED BY IT, AND IN THE EVENT ANY SUCH DEFAULT SHALL CONTINUE FOR A PERIOD OF MORE THAN TEN (10) DAYS AFTER NOTICE THEREOF GIVEN IN WRITING TO BUYER BY SELLER PROVIDED HOWEVER THAT IF THE CAUSE FOR GIVING SUCH NOTICE INVOLVES THE MAKING OF REPAIRS OR OTHER MATTERS REASONABLE REQUIRING A LONGER PERIOD OF TIME THAN THE PERIOD OF SUCH NOTICE. BUYER SHALL BE DEEMED TO HAVE COMPLIED WITH SUCH NOTICE WITHIN TI4E PERIOD SET FORTH IN THE NOTICE AND IS DILIGENTLY PROSECUTING COMPLIANCE OF SAID NOTICE OR HAS TAKEN PROPER STEPS OF PROCEEDING UNDER THE CIRCUMSTANCES TO PREVENT THE SEIZURE, DESTRUCTION, ALTERATION OR OTHER INTERFERENCE WITH SAID PROPERTY BY REASON OF NON- COMPLIANCE WITH THE REQUIREMENTS OF ANY LAW OR ORDINANCE OR WITII THE RULES, REGULATIONS, OR DIRECTIONS OF ANY GOVERNMENTAL AUTI4ORITY AS THE CASE MAY BE; THEN THE BUYER DOES HEREBY AUTHORIZE AND FULLY EMPOWER SAID SELLER OR SELLER'S AGENT TO CANCEL OR ANNUL THIS AGREEMENT AT ONCE AND TO RE-ENTER AND TAKE POSSESSION OF SAID PREMISES IMMEDIATELY, AND BY FORCE IF NECESSARY, WITHOUT ANY PREVIOUS NOTICE OR INTENTION TO RE-ENTER AND REMOVE ALL PERSONS AND THEIR PROPERTY THEREFROM, AND TO USE SUCH FORCE AND ASSISTANCE IN EFFECTING AND PERFECTING SUCH REMOVAL OF SAID BUYER AS MAY BE NECESSARY AND ADVISABLE TO RECOVER AT ONCE FIRST AND EXCLUSIVE POSSESSION OF ALL SAID LEASED PREMISES WHETHER IN POSSESSION OF SAID BUYER OR OF THIRD PERSONS OR OTHERWISE, WITHOUT BEING DEEMED GUILTY OF ANY MANNER OF TRESPASS AND WITHOUT PREJUDICE TO- ANY EVENT THS AGREEMENT SHALL TERMINATE AND BUYER SHALL INDEMNIFY THE SELLERAGAINST ALL UNAVOIDABLE LOSS Off' PAYMENTS OR INCOME WHICH SELLER MAY INCUR BY REASON OF SUCH TERMINATION DURING THE RESIDUE OF THE TERM HEREIN SPECIFIED. THE SELLER MAY, HOWEVER AT ITS OPTION, AT ANY TIME AFTER SUCH DEFAULT OR VIOLATION OF CONDITION OR COVENANT, RE-ENTER AND TAKE POSSESSION OF SAID PREMISES WITHOUT SUCH RE-ENTRY WORKING A FORFEITIJRE OF THF. PAYMENTS TO BE PAID AND THE COVENANTS, AGREEMENTS AND CONDITIONS TO BE KEPT AND PERFORMED BY BUYER FOR THE FULL TERM OF THIS AGREEMENT. IN SUCH EVENT SELLER SHALL HAVE THE RIGHT BUT NOT THE OBLIGATION, TO DIVIDE OR SUBDIVIDE THE SUBJECT PREMISES IN ANY MANNER SELLER MAY DETERMINE AND TO SELL, LEASE OR LET THE SAME OR PORTIONS HEREOF FOR SUCH PERIOD OF TIME AND AT SUCH PRICES OR RENTALS AND FOR SUCH USE AND UPON SUCH COVFNANTS AND CONDITIONS AS SELLER MAY ELECT, APPLYING THE NET PROCEEDS FROM SUCH SALES OR RENTALS FIRST TO THE PAYMENT OR SELLER'S EXPENSES OF MAKING SUCH IMPROVEMENTS IN THE SUBJECT PROPER'T'Y AS MAY BE NECESSARY IN ORDER TO ENABLE SELLER TO SELL OR RENT THE SAME, AND TO THE PAYMENT OF BROKERAGE COMMISSIONS OR OTHER NECESSARY IN EXPENSES OF SELLER IN CONNECTION 'W'YTT14. SUCH RE-SALE OR RENTAL THE BALANCE, IF ANY, SHALL BE APPLIED BY SELLER FROM TIME TO TIME ON ACCOUNT OF THE PAYMENTS DUE OR PAYABLE TBY BUYER HEREUNDER, WITH THE RIGHT RESERVED TO SELLER TO BRING SUCH ACTION OR PROCEEDINGS FOR THE REVOCERY OF ANY DEFICITS REMANING UNPAID AS SELLER MAY DEEM FAVORABLE FROM TIME TO TIME, WITHOUT BEING OBLIGATED TO AWAIT THE END OF THE TERM HEREOF FOR THE FINAL DETERMINATION OF BUYER'S ACCOUNT. ANY BALANCE REMAINING HOWEVER, AFTER FULL PAYMENT AND LIQUIDATION OF SELLER'S ACCOUNT AS AFORESAID SMALL BE PAID TO BUYER WITH THE RIGHT RESERVED TO SELLER AT ANY TIME TO GIVE NOTICE IN WRITING TO BUYER OF SELLER'S ELECTION TO CANCEL AND TERMINATE THIS AGREEMENT UPON GIVING OF SUCH NOTICE AND THE SIMULTANEOUS PAYMENTS BY SELLER TO BUYER OF ANY CREDIT BALANCE IN BUYER'S FAVOR THAT MAY AT THE TIME BE OWING TO BUYER SHALL CONSTITUE A FINAL AND EFFECTIVE CANCELLATION AND TERMINATION OF THIS AGREEMENT AND THE OBLIGATIONS HEREUNDER ON THE PART OF EITHER PARTY TO THE OTHER. SELLER MAY, AT ITS OPTION, WHILE SUCH DEFAULT OR VIOLATION OR COVENANT OR CONDITION CONTINUES, AND AFTER TEN (10) DAYS NOTICE OF ITS INTENTION SO TO DO, DECLARE ALL THE PAYMENTS RESERVED FOR THE FULL TERM OF THIS LEASE REMAINING UNPAID DUE AND PAYABLE A'I' ONCE,; AND BUYER DOES HEREBY EMPOWER ANY ATTORNEY OF ANY COURT OF RECORD IN THE STATE OF PENNSYLVANIA OR ELSEWHERE TO APPEAR FOR IT AND- WAIVE THE ISSUANCE AND SERVICE OF PROCESS AND CONFESS JUDGMENT AGAINST IT FOR THE WHOLE OF ANY PART OF SAID RENT AND THEREAFTER TO RELEASE ALL ERRORS AND WARRANT ALL RIGHTS OF APPEAL AND STAY OF EXECUTION THE INITIAL EXERCISE OR USE OF THIS WARRANT OF ATTORNEY SHALL NOT EXHAUST THE SAME, BUT THE SAME MAY BE USED AND EXERCISED WTHOUT LIMITATION AS OFTEN AS NECESSITY FOR THE USE OF THE SAME ARISE, THE EXERCISE OR USE OF THIS WARRANT OF ATTORNEY SHALL NOT PREVENT SFT.LF.,R FROM SUIRSFQUENTLY TERMINATING THIS AGREEMENT, BY GIVING NOTICE TO BUYER OF ITS ELECTION SO TO DO AND UPON ITS TENDER TO BUYER OF A SUM EQUAL TO THE AMOUN'T', IF ANY, PAID BY THE BUYER FOR SALE PAID AFTER THE DATE OF SUCH TERMINATION. 4 IN ADDITION TO THE OTHER RIGHTS GRANTED TO THE SELLER HERUNDER, SELLER MAY, AT ITS OPTION, WHILE SUCH DEFAULT OR VIOLATIONS OF COVENANTS OR CONDITION CONTINUE(S), AND AFTER TEN (10) DAYS' NOTICE OF ITS INTENTIONS TO DO SO, CONFESS JUDGMENT FOR POSSESSION AND EJECTMENT OFTHE BUYER FROM THE SUBJECT PROPERTY AND BUYER DOES HEREBY EMPOWER ANY ATTORNEY OF ANY COURT TO RECORD IN THE COMMONWEALTH OF PENNSYLVANIA OR ELSEWHERE TO APPEAR FOR IT AND WAIVE THE ISSUANCE AND SERVICE OF PROCESS AND CONFESS A JUDGMENT IN EJECTMENT. ALSO IN ADDITION TO THE OTHER RIGHTS GRANTED TO THE SELLER UNDER THIS AGREEMENT, BUYER AGRESS THAT IN THE EVENT THAT THE AMOUNTS DUE SELLER UNDER THIS AGREEMENT ARE COLLECTED BY LAW OR THROUGH AN ATTORNEY AT LAW, AND JUDGMENT IS ENTERED IN FAVOR OF SELLER AGAINST BUYER WHETHER BY CONFESSION OR OTHERWISE, THEN BUYER. AGREES TO PAY ALL COSTS OF COLLECTION, INCLUDING ATTORNEY'S FEES IN THE AMOUNT OF TEN PERCENT OF THE JUDGMENT OR ONE THOUSAND DOLLARS ($1,000.00), WHICHEVER IS GREATER. 7. MISCELLANEOUS. a. Notices. All notices under this Agreement shall be in writing, delivered by confirmed telefax, certified mail return receipt requested or by hand, and shall be deemed to have been given wb, :n received by the intended recipient at the following address (or at such other address: as the intended recipient shall have specified in a written notice given to the other parties): i) If to Seller: 383 North 26th Street, Camp Hill, PA 17011 ii) If to Buyer: 640 Lopax Road, Harrisburg, PA 17112 8. AMENDMENTS. This Agreement u -,y not, be amended or supplemented except by means of a written agreement executed on behali• , each of the parties to this Agreement. 9. SEVERABILITY. Whenever possible, each provision of this Agreement shall be infegxeted in such manners to be effec-,: Ve and valid under applicable law, but if any one or mcx+e of the provisions or a portion of any provisions of this Agreement "be deemed to be contrary to law, invalid, illegal, unenforceable or . • • tasonable in any respect by any governmental authority, court of law or arbitrator having con, ; •.,?tcnt jurisdiction over the subject matter of and over the parties to this Agreement, the rernauz : , :isions, portions of such provisions or reasonable scope of such provisions shall be severable a v' nforceable in accordance with their terns. 10. WAIVER No failure on the part of ray party to this Agmcmcnt to cxcrciw any right or remedy under this Agreement, and no delay on rbe part of any party to this Agreement in exercising any ri& or remedy under this Amt, shall - • nnst itute a waiver of mrh right or remedy, and no single or partial exercise of any such right or r, ? edy shall preclude any other or further exercise of such right or remedy or of any other right or rer - 11. St7CCESSORS AND ASSIGNS. F - may not assign any of its rights or delegate any of its obligations under this A reematt by c ..._w? operation of law or od crwise without the written consent of Seller. This Agrew=t sh& ?e binding upon and, except as otherwise provided in the Agreement, shall inure to the benefit P,.' :.lie parties to this Agrocmart and their respective permitted successors and assigns, if ar 12. DISPUTE RESOLUTION. Any c'..,:Dutes arising pursuant to this Agreement shall be brought before the Court of Conmiw -"., of Cumberland County, Pe nw)4 vania, or the Federal Courts for the Middle District of Pem.: a and the parties submit to exclusive jwisdicdm of those Courts. The prevailing party slat, ? ,,ntitled to recover all costs incurred, including reasonable attorney's fees. Pcrinsylva. .1 w shall govern. This Agreement shall be construed in accordance with the laws of the C. n inonwealth of Peansylwania without regard to its conflicts of laws provisions. 13. ENT= ,A,GREEN(ENT. All ExA agrcanents shall be considered incox terms used in such F.xtnbits shall haw Agreement This Agreement and the delivered pursuant hereto or thereto c Agreement and supersede all other aW subject mattes of this Amt a this Agreement and the ancillary written '. into and a part of this Afire mcnt, and all capitalised . meanings as similarly capitalized ten is used in this :y written agrxments and other written in*mne rts ute the entire understanding of the pardes to this nie nts and understandings bet%= thMn relaoring to the 14. COUNTERPARTS. Tbis Agrmr. - : y be exeaite d in countesparts, including by me= of telef =d sign= pages, each ofwH-, .•' constitute an original and all ofwbad), wlien taken together, shall constitute the Ag reew :.: TAT WTINESS WfEEREOF, Seller w uyerhave eac aced d is Agreement as oftlae date set fxtbelow o5-61 -11 y? Date er Tate EXMBff A Assets 1. All equipment, inventory and fixtc; :s 2. All intellectual property 3. All telephone numbers 4. All Trade Names 5. All customer records and lists 6. All goodwill associated with the t...-iess 7 Agreement of Sublease THIS AGREEMENT OF SUBLEASE (this "Sublease") is made as of the 8 day of May, 2011 between Brandon C. Powers, with an address at 383 N. 26th Street, Camp Hill, PA 17011 ("Sublandlord"), and Veronica G. Arevalo and Varonio D. Hernandez, adult individuals, with an address at 640 Lopax Road, Harrisburg, PA 17112 (collectively, "Subtenant"). Background: A. Sublandlord has entered into a lease with Giuseppe Barone and Giovanni Barone (collectively, "Landlord") dated July 1, 2008 (herein referred to as the "Lease") for certain commercial space consisting of 700 Valley Road, Enola, PA 17025 (collectively the "Demised Premises") within Landlord's building (the "Building"). A true and correct copy of the Lease, from which certain business terms irrelevant to this Sublease have been excised, is attached hereto as Exhibit A and hereby made a part hereof. B. Subtenant desires to sublease from Sublandlord all of the Demised Premises and Sublandlord is agreeable to the making of such sublease on the terms and conditions hereinafter set forth. Agreement NOW, THEREFORE, in consideration of the rents herein reserved and the covenants hereinafter expressed, and intending to be legally bound, Sublandlord and Subtenant agree as follows: 1. Sublease; Term. Sublandlord hereby demises and sublets to Subtenant, who hereby subleases and takes from Sublandlord, the Sublet Premises for a term (the "Term") beginning on the Lease Commencement Date (as defined in the Lease) and ending on December 31, 2012, unless sooner terminated in accordance with the terms of this Sublease or the Lease. 2. Rentable Area. The rentable area of the Sublet Premises herein stated is based upon the determination by Landlord's space planner, and Sublandlord shall not be liable to Subtenant for any representations related to the actual number of rentable square feet available. In addition, Subtenant has inspected the Sublet Premises and is thoroughly familiar with it. 3. Use. Subtenant shall not use the Sublet Premises for any purpose other than as a restaurant, including such purposes as ordinarily and customarily are required for the use of the Sublet Premises as a restaurant. 4. Rent. Subtenant shall pay to Sublandlord during the Term an annual rental (collectively "Rent") equal to rent pursuant to the primary Lease for the Sublet Premises, including any added rent or rental increases or utilities and insurance that nlay be required, and in all other ways satisfying all obligations of the _ PLAINTIFF'S EXH 1 ? primary Lease. If any insurance policy required to be maintained by Subtenant under this Sublease is in default for any reason, Sublandlord may purchase insurance or make payments or otherwise take any steps needed to correct the default and charge it to Subtenant as added rent, which shall immediately be due to Sublandlord. All payments of Rent shall be paid without demand, offset or deduction at the office of Sublandlord or at such other place as Sublandlord may designate, and otherwise in the same manner and in accordance with the same terms and conditions as are set forth in the Lease. Subtenant shall maintain and fully pay all utilities at the Sublet Premises. If any utilities are unpaid by Subtenant, Sublandlord may pay the utilities and the cost of paying the utilities shall be added rent immediately payable to Sublandlord by Subtenant. 5. Subleasehold Improvements. 5.1 All improvements to the Sublet Premises shall be made by Subtenant at the Subtenant's expense and in accordance with all requirements of the Lease. Subtenant shall not install, construct, demolish, or alter in any fashion any part of the Sublet Premises or any part thereof without Sublandlord's and Landlord's prior written approval. 5.2 Subtenant may improve the Sublet Premises only at Subtenant's sole cost and expense. All provisions the Lease governing construction matters, including preparation and approval of design documents and hiring of contractors, shall be fully applicable to Subtenant's improvement of the Sublet Premises as if the terms "Landlord," "Tenant" and "Premises," wherever appearing therein, were amended to read, respectively, "Sublandlord," "Subtenant" and "Sublet Premises." 5.3 Subtenant shall provide to Sublandlord its proposal with respect to any signage for the Sublet Premises, and no such signage shall be installed by Subtenant without Sublandlord's prior written approval, which approval shall not be unreasonably withheld or delayed. 5.4 All fixtures attached to the Sublet Premises (other than Subtenant's trade and business fixtures and equipment) shall, unless Sublandlord gives Subtenant notice to remove them at the time Sublandlord approves Subtenant's installation thereof, remain at the Sublet Premises at the expiration or sooner termination of this Sublease and become the property of Sublandlord without payment therefor. With respect to those fixtures which Sublandlord gives Subtenant notice to remove at the time Sublandlord approves Subtenant's installation thereof, such fixtures shall be removed at the sole cost of Subtenant before the expiration or sooner termination of this Sublease, and in such event, Subtenant shall repair all damage to the Sublet Premises caused by the installation or removal thereof and shall restore the Sublet Premises to its original improved condition (ordinary wear and tear excepted), on or before the expiration or termination of this Sublease. Should Subtenant fail to remove the same or to restore the Sublet Premises as aforesaid, Sublandlord may cause same to be removed and/or the Sublet Premises to be restored at Subtenant's expense, and Subtenant hereby agrees to pay Sublandlord the actual cost of such removal and/or restoration, together with any and all damages which Sublandlord may suffer and sustain by reason of the failure of Subtenant to remove the same and/or restore the Sublet Premises as herein provided, on demand as Additional Rent. v. 1l ci rigs o? Lease InCorporatea' This SilbieaSe 1S subject and Subordinate to all of the teriiS and conditions of the Lease, each of which is hereby incorporated herein by reference and made a part hereof. The parties agree, with respect to the Lease, as follows: 6.1 The terms, covenants and conditions contained in the Lease shall, as between Sublandlord and Subtenant, constitute the terms, covenants and conditions of this Sublease, except to the extent that they are inapplicable hereto or inconsistent herewith. The parties hereto specifically agree that in no event shall Subtenant be entitled to, or claim, any of the rights conferred upon -Sublandlord under the Lease, including without limitation: the right to any alteration or redecoration allowances, or allowances of any other nature whatsoever, or any right or claim to any insurance proceeds, condemnation awards, rights to non-disturbance agreements, options to renew, options to expand or the like, any right of early termination, or any right similar or dissimilar to any of the foregoing. 6.2 Subtenant shall not do or permit to be done, with respect to the Sublet Premises or Subtenant's interest in this Sublease, any act or thing which will constitute a breach or violation of any of the terms, covenants or conditions of the Lease. 6.3 Subtenant shall fully and faithfully observe and perform, with regard to the Sublet Premises and Subtenant's interest in this Sublease, all of the duties and obligations contained in the terms, covenants and conditions of the Lease to be observed or performed by Sublandlord as tenant under the Lease. 6.4 Sublandlord, in its relations with Subtenant hereunder, shall have all of the rights and remedies afforded to Landlord in its relations with Sublandlord as tenant as set forth in the Lease. Without limiting the generality of the foregoing, (i) the consent of Sublandlord shall be required for any action of Subtenant which, pursuant to the Lease, would require the consent of Landlord as to the tenant, and (ii) Sublandlord shall have the same right to prescribe regulations as to Subtenant's use and occupancy of the Sublet Premises as is afforded Landlord in the Lease. 6.5 Sublandlord is hereby released and relieved of (i) all of the obligations of Landlord as set forth in the Lease, and (ii) any liability to Subtenant for any default by Landlord under the Lease or any failure by Landlord to perform any of its obligations thereunder. Subtenant agrees and acknowledges that Sublandlord is not in control of the Building or of any of the services or facilities that may be appurtenant to or supplied at the Building or by Landlord under the Lease. Sublandlord shall not be responsible for any failure or interruption, for any reason whatsoever, of any such services or facilities; and Subtenant agrees that no failure to furnish, or interruption of, any such services of facilities shall give rise to (i) any abatement, diminution or reduction of Subtenant's obligations hereunder, except to the extent that Sublandlord's obligations under the Lease are abated, diminished or reduced thereby, (ii) any constructive eviction, whether in whole or in part, or (iii) any liability on the part of Sublandlord. If there shall be any failure to furnish, or interruption of any of, such services or facilities and Subtenant gives notice thereof to Sublandlord, Sublandlord shall, to the extent permitted under the Lease, make reasonable and diligent efforts to cause Landlord under the Lease to furnish the same, but Sublandlord need not bring any action or proceeding against the Landlord under the Lease in connection therewith. In any event, Subtenant shall not request Sublandlord or Landlord to furnish any additional services, and Sublandlord shall have no obligation to request Landlord to do so, unless Subtenant agrees to pay for such services. 3 6.6 Subtenant acknowledges that the rights granted to it under this Sublease are not in any sense greater or broader than the rights granted to Sublandlord as tenant under the Lease. 7. Insurance. 7.1 Subtenant's Insurance. Subtenant shall maintain, with Sublandlord, Valley View Restaurant, Inc., Landlord and "Agent (as such term is defined inlhe Lease) named as additional insureds; such liability and other insurance as is required to be maintained by the tenant under the Lease, with such limits and otherwise in accordance with such requirements as are set forth in the Lease. Such insurance also shall name as additional insureds such other parties as Landlord shall specify. 7.2 Waiver of Subrogation. Sublandlord and Subtenant hereby release each other from any and all liability or responsibility to each other or anyone claiming through or under them by way of subrogation or otherwise for any loss or damage to property covered by any fire and extended coverage insurance then in force, even if such fire or other casualty shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible, provided, however, that this release shall be applicable and in force and effect only to the extent of and with respect to any loss or damage occurring during such time as the policy or policies of insurance covering said loss shall contain a provision to the effect that this release shall not adversely affect or impair said insurance or prejudice the right of the insured to recover thereunder. Sublandlord and Subtenant shall each cause their respective insurers to include such a provision in their respective policies, subject, however, to the following provisions: If at any time the fire insurance carriers issuing fire insurance policies to Sublandlord or Subtenant shall exact an additional premium for the inclusion of such or similar provisions, the party whose insurance carrier has demanded the premium (the "Notifying Party") shall give the other party hereto notice thereof. In such event, if the other party requests, the Notifying Parry shall require the inclusion of such or similar provisions by its fire insurance carrier, and the requesting other party shall reimburse the Notifying Party for any such additional premiums for the remainder of the term of this Lease. If at any time any such insurance carrier shall not include such or similar provisions in any fire or extended coverage insurance policy, then, as to loss covered by that policy, the release set forth in this Section 7.2 shall be deemed of no further force or effect. The party whose policy no longer contains such provision shall notify the other party that the provision is no longer included in the policy, but a failure or delay in giving such notice shall not affect such termination of the release set forth in this Section. During any period while the foregoing waivers of right of recovery are in effect, the party hereto as to whom such waivers are in effect shall look solely to the proceeds of such policies to compensate itself for any loss occasioned by fire or other casualty which is an insured risk under such policies. 8. Subtenant's Defaults; Sublandlord's Remedies. 8.1 Defaults. If any of the following shall occur: 8. 1.1 Subtenant does not pay in full when due any installment of rent or any other charge or payment whether or not herein included as rent; or 8. 1.2 Subtenant violates or falls to perform or otherwise breaks any covenant, agreement or condition 4 herein contained or any other obligation of Subtenant to Sublandlord; or 8.1.3 Subtenant does not occupy the Sublet premises within sixty (60) days after the Lease Commencement Date; or 8.1.4. Subtenant removes or attempts to remove Subtenant's property or property of Valley View -Restaurant; Inc.; from the Sublet Premises other than (i) in the ordinary course of business or (ii) to replace the subject furniture or equipment, in either case without having first paid to Sublandlord in full all Rent and any other charges that may be due during the entirety of the Term; or 8.1.5 Subtenant becomes the subject of commencement of an involuntary case under the federal bankruptcy law as now or hereafter constituted, or there is filed a petition against Subtenant seeking reorganization, arrangement, adjustment or composition of or in respect of Subtenant under the federal bankruptcy law as now or hereafter constituted, or under any other applicable federal or state bankruptcy, insolvency, reorganization or other similar law, or seeking the appointment of a receiver, liquidator or assignee, custodian, trustee, sequestrator (or other similar official) of Subtenant or any substantial part of its property, or seeking the winding-up or liquidation of its affairs and such involuntary case or petition is not dismissed within sixty (60) days after the filing thereof, or if Subtenant commences a voluntary case or institutes proceedings to be adjudicated a bankrupt or insolvent, or consents to the institution of bankruptcy or insolvency proceedings against it, under the federal bankruptcy laws as now or hereafter constituted, or any other applicable federal or state bankruptcy, reorganization or insolvency or other similar law, or consents to the appointment of or taking possession by a receiver or liquidator or assignee, trustee, custodian, sequestrator (or other similar official) of Subtenant or of any substantial part of its property, or makes any assignment for the benefit of creditors, or admits in writing its inability to pay its debts generally as they become due, or fails to generally pay its debts as they become due, or if Subtenant, its partners, shareholders, or any committee thereof takes any action in contemplation of any of the foregoing, then: 8.2 Sublandlord's Remedies. In any such event set forth above, and at the sole option of Sublandlord: 8.2.1 The whole balance of Rent and any other charges, whether or not payable as Rent, for the entire balance of the Term and any renewal or extension thereof for which Subtenant has become bound, or any part of such Rent and charges, and also all or any costs and sheriffs, marshall's, constable's or other official's commissions, whether chargeable to Sublandlord or tenant, including watchman's wages, shall be taken to be due and payable and in arrears as if by the terms of this Sublease said balance of Rent and such other charges and expenses were on that date payable in advance (and Sublandlord hereby agrees that it shall endeavor, in good faith, to mitigate its damages, provided that (i) Sublandlord shall not be obligated to sublease less than all of the Sublet premises or accept economic terms which would yield less actual rentals to Sublandlord than would have accrued in the aggregate under this Sublease on a per annum basis, and (ii) Sublandlord shall not be prohibited or prevented from exercising all remedies available against Subtenant during the pendency of any mitigation efforts); and/or 8.2.2 The Term of this Sublease shall terminate and become absolutely void, without notice and without any right on the part of Subtenant to save the forfeiture by payment of any sum due or by other r• performance of any condition, term, agreement or covenant broker; and/or 8.2.3 Any prothonotary or attorney of any court of record may appear for Subtenant in any and all actions for Rent in arrears or treated as if in arrears, and for charges, whether or not payable as Rent, and may sign for Subtenant an agreement, for which this Sublease shall be his sufficient warrant, for entering in any competent court an amicable action or actions in assumpsit for the recovery-of arrears of Rent and Rent-treated-as -if in arrears; and the said charges; and in any suits - - or in said amicable actions to confess judgment against Subtenant for all arrears of Rent and Rent treated as if in arrears and the said charges, and for interest and costs, together with an attorney's commission of ten percent (10%) thereof. Such authority shall not be exhausted by any one or more exercise thereof, but judgment may be confessed from time to time as often as any Rent in arrears or Rent treated as if in arrears or charges fall due and are not paid. Such powers may be exercised during as well as after the expiration or termination of the original Term and during and at any time after any extension or renewal of the Term; and/or 8.2.4 When this Sublease shall be terminated by covenant or condition broken, either during the original Term or any renewal or extension thereof, and, also when and after the Term hereby created or any renewal or extension thereof shall have expired, it shall be lawful for any attorney as attorney for Subtenant to file an agreement for entering any competent court an action for judgment in ejectment against Subtenant and all persons claiming under Subtenant for the recovery by Sublandlord of possession of the Sublet Premises, for which this Sublease shall be his sufficient warrant, whereupon if Sublandlord so desires, a Writ of Possession may issue forthwith, without any prior writ or proceedings whatsoever, and if for any reason after such action shall have been commenced, it shall be cancelled or suspended and possession of the Sublet Premises remains in or is restored to Subtenant, Sublandlord shall have the right upon any subsequent default or upon the expiration or termination of this Sublease, or any renewal or extension hereof, to bring one or more actions in ejectment as hereinbefore set forth to recover possession of the Sublet Premises; and/or 8.2.5 In any action in ejectment, or in assumpsit for Rent or charges, Sublandlord shall cause to be filed in such action an affidavit setting forth the facts necessary to authorize the entry of judgment and if a true copy of this Sublease (and of the truth of the copy, such affidavit shall be sufficient proof) be filed in such action, it shall not be necessary to file the original as a warrant of attorney, notwithstanding any law, rule of court, custom or practice to the contrary. Subtenant releases to Sublandlord, and to any and all attorneys who may appear for Subtenant, all procedural errors in any proceedings taken by Sublandlord, whether by virtue of the powers of attorney contained in this Sublease or not, and all liability therefor. Subtenant expressly waives the benefits of all laws, now or hereafter in force, exempting any property within the premises or elsewhere from distraint, levy or sale. Subtenant further waives the right to any notice to remove as may be specified in the Pennsylvania Landlord and Tenant Act of April 6, 1951, as amended, or any similar or successor provision of law, and agrees that zero (0) days notice shall be sufficient in any case where a longer period may be statutorily specified; and/or 8.2.6 After reentry or retaking or _recovering of the Sublet Premises, whether by way of termination of this 6 Sublease or not, Sublandlord may lease the Sublet Premises or any part or parts thereof to such person or persons upon such terms as may in Sublandlord's discretion seem best for a term within or beyond the Tenn of this Sublease, and Subtenant shall be liable for any loss of Rent for the balance of the Term and any renewal or extension for which Subtenant has become bound, plus the reasonable costs and expenses of reletting and. of making repairs and alterations to the Sublet Premises. Further, Subtenant, for itself and its successors and assigns, hereby irrevocably constitutes and appoints Sublandlord as Subtenant's agent to collect the rents due-to become due from all subleases and- apply,-the same to the Rent due << - hereunder without in any way affecting Subtenant's obligation to pay any unpaid balance of Rent due or to become due hereunder; and/or 8.2.7 Sublandlord may (but shall not be obligated to do so), in addition to any other rights it may have in law or equity, cure such default on behalf of Subtenant, and Subtenant shall reimburse Sublandlord upon demand for all costs incurred by Sublandlord in curing such default. 8.3 Notice of Default. Except as to defaults under Sections 8.1.3, 8.1.4, or 8.1.5, Sublandlord shall not exercise any right or remedy provided for in this Sublease or allowed by law because of any default of Subtenant, unless Sublandlord shall have first given written notice of such default of Subtenant, and Subtenant, and within a period of ten (10) days thereafter, Subtenant shall have failed to pay the sum or sums due if such default consists of the failure to pay money, or, if such default consists of something other than the failure to pay money, Subtenant shall have failed within thirty (30) days after such notice from Sublandlord to correct such default, or if such default is not susceptible of being corrected within the aforesaid thirty (30) days, after such timely commencement Subtenant fails actively and diligently in good faith to proceed with and continue to the correction of the default until it shall be fully corrected; provided, however, that Sublandlord shall not be required to give, and Subtenant shall not be entitled to the benefit of, any such notice or grace period (A) more than two (2) times in any twelve (12) month period for any monetary defaults, or (B) for multiple non-monetary defaults which are in nature similar, where Sublandlord has given Subtenant notice of the first such default and the grace period respecting same is unexpired and the default remains uncured, or (C) if in Sublandlord's reasonable judgment, Subtenant's delay in curing such default would materially jeopardize the Sublet premises, the Demised Premises, or any occupants thereof. 9. Notices. Any notices given or required to be given by either party to the other, shall be in writing and shall be deemed given if delivered personally underwritten acknowledgment of receipt (or, if either party shall have vacated their respective space in the Building, when mailed by United States certified mail, return receipt requested), to the respective addresses set forth at the outset. The address to which all notices are to be sent may be changed by the parties from time to time by giving notice of such change in writing by certified mail delivered to all parties to this document.. 10. Indemnification. Subtenant hereby agrees to indemnify and save Sublandlord and its constituent partners harmless against and from any or on all claims by or on behalf of any person or persons, firm or firms, corporation or corporations, or other entity, arising from: (a) any negligent act, error, or omission of Subtenant or of any of Subtenant's servants, employees, contractors, agents, or invitees in or about the Building or the Sublet Premises; (b) any damage or injury to persons or property occurring upon or in connection with t! e use or oCCUrnancy of the Sublet Premises; and (c) such indemnity shall extend against s and include all costs, counsel fees and expenses and liabilities reasonably incurred in connection with any such claim or action or proceeding brought with respect thereto; and in case any action or proceeding is brought against Sublandlord by reason of any such claim, Subtenant, upon notice from Sublandlord, covenants to resist and/or defend at Subtenant's expense such action, claim, or proceeding. In no event shall the foregoing obligation to indemnify extend to claims arising out of the negligent acts, errors or omissions of Sublandlord or its servants, employees, contractors or agents. 11. Assumption of Risk; Release. Subtenant, as a material part of the consideration to Sublandlord, hereby assumes all risk of damage to property or loss of property in, from, upon, or about the Sublet Premises from any source and to whomsoever belonging, and Subtenant hereby waives all claims in respect thereof against Sublandlord except claims based upon the gross negligence or willful misconduct of Sublandlord, its servants, agents or employees, and Subtenant agrees to indemnify, defend, and save Sublandlord harmless from and against any such claims by any other party. Without limiting the foregoing, neither Sublandlord nor its agents or employees shall be liable for and Subtenant hereby releases them from (a) any damage to property of Subtenant or of others entrusted to employees of Landlord, (b) the loss or damage to any property of Subtenant by theft or otherwise, (c) any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas, electricity, electrical disturbance, water, rain or snow or leaks from any part of the Building or from the pipes, appliances or plumbing works or from the roof, street, or sub-surface or from any other place or by dampness or by any other cause of whatsoever nature (whether similar or dissimilar to those above specified), unless caused by or due to the gross negligence of Sublandlord, its agents, servants or employees, or (d) any such damage caused by other tenants or persons in the Building or caused by operations in construction of any private, public or quasi-public work. 12. Mortgage; Assignment. Subtenant shall not sell, mortgage or assign this Sublease, or sublease any part or all of the Sublet Premises, without prior written consent of both Landlord and Sublandlord; such consent shall be at the sole discretion of Landlord and Sublandlord. Any attempt by Subtenant to mortgage, assign or sublease, where such consent is required, without the prior written consents of Landlord and Sublandlord, shall be void and of no effect. 13. Termination. This Sublease shall terminate and expire at midnight at the close of the last day of December 31, 2012 without the requirement of any further notice by either party to the other, and without any right on the part of Subtenant to renew or extend the Term. The parties may agree in writing to extend the Sublease term prior to that occasion only in a writing signed by Subtenant, Sublandlord and Landlord. 14. Landlord Approval. This Sublease shall not be effective until (i) executed by Sublandlord and Subtenant, and (ii) approved by Landlord and the holder of any mortgage encumbering the Building. If the Landlord or such mortgagee shall refuse to consent to this Sublease, Sublandlord shall not be obligated to take any action to obtain such consent, and this Sublease shall thereupon be void and of no effect. 15. Miscellaneous. 1 S l ';rune is of the essence of this Sublease and of the performance by Subtenant and Sublandlord of each and every term and condition of this Sublease and of each and every term and condition of the Lease which the Subtenant and Sublandlord have herein agreed to keep and perform. 15.2 This Sublease contains all of the agreements between Sublandlord and Subtenant and may not be modified except by a written instrument duly executed by the parties. 15.3 Subject to the provision-of--Section 14; the terms and conditions of this?Sublease shall extend to and be binding upon the heirs, successors and assigns of the respective parties. 15.4 Failure on the part of either party to complain of any act or failure of the other party, or to declare the other party in default, irrespective of how long such failure continues, shall not constitute a waiver by either Sublandlord or Subtenant of its respective rights hereunder. A giving of consent by Sublandlord or Subtenant in any one instance shall not limit or waive the necessity of obtaining such consent in the future. 15.5 The captions contained in this Sublease are for convenience of reference only, and shall not be deemed a part of the text of this Sublease, or to provide any interpretation thereof. 15.6 If any tern or provision of this Sublease or of the Lease, as the same applies to Sublandlord and Subtenant, shall be held invalid or unenforceable, the remainder of the Sublease and the Lease, as applicable, shall not be affected thereby, and each term and provision of this Sublease and the Lease, as applicable, shall be valid and enforceable to the full extent permitted by law. 15.7 The word "person" as used herein shall mean any natural person, partnership, corporation, or any other form of business or legal entity. 15.8 All words or terms used in this Sublease, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require. 15.9 Each party represents and warrants to the other that it has dealt with no broker, agent, or other intermediary who might be entitled to receive a commission in connection with the existence, execution or delivery of this Sublease, and each shall indemnify, defend and hold the other harmless from and against any breach of such respective representations and warranties. 15.10 The parties hereto acknowledge and agree that nothing contained in this Sublease is intended to create between them a joint venture or a partnership of any kind, and the relationship between them evidenced by this Sublease is as sublandlord and subtenant only. 15.11 This Sublease and its terms and conditions shall be governed by the laws of the Commonwealth of Pennsylvania. 15.12 Sublandlord shall be given keys (or equivalent) to all locks on doors within or to the Sublet premises. 9 Brandon Powers 383 North 26' St Camp Hill, PA 17011 October 11, 2011 VIA CERTIFIED MAIL Veronica G. Arevalo Varonio D. Hernandez 640 Lopax Road Harrisburg, PA 17112 RE: 700 Valley Road Enola, PA Dear Veronica and Varonio: This letter is to serve as a Notice of Default for the Asset Purchase Agreement of the restaurant at 700 Valley Street, Enola Pa. signed dated 8 May 2011. Default language for this agreement is provided in paragraph 6 of said agreement. I have not received any payments from you since our agreement for the purchase of the restaurant (located at the address referenced above) was signed back in May of 2011. In accordance with the terms of the agreement, I request that you immediately forward the amount of $8,250.00 which reflects the sums of all unpaid monies to date. In addition, it is my understanding that no rent payments have been made to Mr. Barone or payments to me for the sublease of the building and premises as set forth in the sub-lease signed 8 May 2011.. In accordance with the terms of the sub-lease agreement, l request that you immediately forward the amount of $16,200.00 which reflects the sums of all unpaid monies to date. You continue to be in default of the agreement as set forth above. I expect full satisfaction of the above within ten (10) days of receipt of this correspondence. Otherwise, I will promptly move forward to take possession of the premise and its contents, as well as seek to collect judgment and pursue any and all legal remedies available, including attorney fees and costs. Respectfully, BRANDON POWERS CC: Paige Macdonald-Matthes, Serrattelli, Schiffman & Brown; Amy Custer, Mid-Penn Bank PLAINTIFF'S EX IT a ¦ Con 4 lete If R Iterns 1, 2, and 3. Wired. ¦ Print your r and address on the reverse so that we can return the card to you. ¦ Attach this card to the back of the mailplece, or on the front If space permits. 1. Article Addressed to: A redo do -- 011 -boa 0 Agerd (P, 9d Name)- 1 C. Dag Delivery D. Is delivery address di fam t from item 1? 0 Yes If YES, after delivery address below: 0 No f f ? dMail 13 Duess mail Env(k ? Registered O Return Receipt for Merchandise 0 Insured Mail M C.O.D. 4. Restricted Delivery? (Ek+ra Fee) 0 Yes 2. Article Number ?011 0110 0002 3993 1466 Ps Form 3811, February 24134 Dornest)c Retum Receipt 10259eo24A-1540 SERRATELLI, SCHIFFMAN & BROWN, P. C. Paige Macdonald-Matthes, Esquire Supreme Court ID No. 66266 2080 Linglestown Road Harrisburg, PA 17110 (717) 540-9170 (717) 540-5481 facsimile Email: PMacdonald-Matthes@ssbc-law.com Attorneys for Plaintiff, Brandon C. Powers `o -? -a. C:) 77 ?--n s, ?n BRANDON C. POWERS, PLAINTIFF V. VERONICA G. AREVALO AND VARONIO D. HERNANDEZ DEFENDANTS . IN THE COURT OF COMMON PLEAS . CUMBERLAND COUNTY, PENNSYLVANIA . DOCKET NO. 11- 8316 OA-V; 1-rerIk . CIVIL ACTION-LAW NOTICE PURSUANT TO 42 Pa.C.S. 42737.1 Please take notice that the Plaintiff in this matter has entered judgment by confession against you in the amount of $14,593.25. You are entitled to a petition to "strike" or "open" the judgment. In order to do so, you must promptly file a petition with the Court of Common Pleas of Cumberland County, Pennsylvania, as required by Rule 2959 of the Pennsylvania Rules of Civil Procedure. Any such petition can be filed with the clerk or Prothonotary at the courthouse in Carlisle, Cumberland County. A petition is a formal statement of your basis for challenging the judgment. You must include the names of the parties at the top of the first page and the case number, which is shown above. The petition must state your reasons for challenging the judgment in separate numbered paragraphs. You have to sign the petition and include a sworn statement at the end of the document verifying that the facts you state in the petition are true and accurate. You will waive any defense and objections not included in your petition to strike or open. You must therefore make every effort to raise all possible issues and defenses in your petition to strike or open in order to avoid waiving any claims. If you elect to file a petition, you must meet the requirements of Rule 2959 of the Rules of Civil Procedure. A full copy of Rule 2959 is attached to this Notice. You may also have to comply with local rules of procedure in effect in the county where the judgment was entered. If you do not file a petition challenging the judgment, the Plaintiff may take steps to collect on the judgment by asking the Sheriff to seize your assets. Accordingly, you should immediately seek the advice of attorney. If you wish to discuss the matter with an attorney but do not know how to find one, you may request a referral by contacting the following agency: CUMBERLAND COUNTY LAWYER REFERRAL SERVICE 32 S. BEDFORD STREET CARLISLE, PA 17013 (717) 249-3166 Corporations may be unable to represent themselves in court. If the defendants include a corporation, the corporation must appear through an attorney if it intends to challenge the judgment. You may receive other papers and notices regarding the judgment. Those other papers do not negate or override this Notice. Likewise, this Notice is not intended to and does not negate any of the notices or information obtained in other papers that may be served upon you. We reiterate that you are required to act promptly if you wish to seek relief from the judgment. Under certain circumstances, you have only 30 days in which to file a petition after papers are served on you. Even if the 30 day rule does not apply, you must act promptly in order to protect your interests. Failing to act in a timely manner will render you unable to challenge the judgment at a later time. If you were incorrectly identified and judgment was entered against you in error you may be entitled to collect cost and reasonable attorney's fees as determined by the Court. Respectfully Submitted, Date: November 2, 2011o.?cn Paige Macdonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road Suite 201 Harrisburg, PA 17110 (717) 540-9170 Attorney for Plaintiff Rule 2959. Striking off or Opening Judgment. Pleadings. Procedure. (ax 1) Relief from judgment by confession shall be sought by petition. Except as provided in subparagraph (2), all grounds for relief whether to strike off the judgment or to open judgment must be asserted in a single petition. The petition may be filed in the county in which the judgment was originally entered, in any county to which the judgment has been transferred or in any other county in which the sheriff received a writ of execution directed to the sheriff to enforce the judgment. (2) The ground that the waiver of the due process rights of notice and hearing was not voluntary, intelligent and knowing shall be raised only (i) in support of a further request for a stay of execution where the court has not stayed execution despite the timely filing of a petition for relief from the judgment and the presentation of prima facie evidence of a defense; and (ii) as provided by Rule 2958.3 or Rule 2973.3 (3) If written notice is served upon the petitioner pursuant to Rule 2956.1(c)(2) or Rule 2973.1(c), the petition shall be filed within thirty days after such service. Unless the defendant can demonstrate that there were compelling reasons for the delay, a petition not timely filed shall be denied. (b) If the petition states prima facie grounds for relief the court shall issue a rule to show cause and may grant a stay of proceedings. After being served with a copy of the petition the plaintiff shall file an answer on or before the return day of the rule. The return day of the rule shall be fixed by the court by local rule or special order. (c) A party waives all defense and objections which are not in the petition or answer. (d) The petition and rule to show cause and the answer shall be served as provided in Rule 440. (e) The court shall dispose of the rule on petition and answer, and on any testimony, depositions, admissions and other evidence. The court for cause shown may stay proceedings on the petition insofar as it seeks to open the judgment pending deposition of the application to strike off the judgment. If the evidence is produced which in a jury trial would require the issues to be submitted to the jury the court shall open the judgment. (f) The lien of the judgment or of any levy or attachment shall be preserved while the proceedings to strike off or open the judgment are pending. (g)(1) A judgment shall not be stricken or opened because of a creditor's failure to provide a debtor with instructions imposed by an existing statute, if any, regarding procedures to follow to strike a judgment or regarding any rights available to an incorrectly identified debtor. (2) Subdivision (g)(1) shall apply to (1) judgments entered prior to the effective date of subdivision (g)' which have not been stricken or opened as of the effective date and (2) judgments entered on or after the effective date. 'Subd. (g) added by Order of Sept. 28, 2004, imd. effective. SERRATELLI, SCHIFFMAN & BROWN, P. C. Paige Macdonald-Matthes, Esquire Supreme Court ID No. 66266 2080 Linglestown Road r Harrisburg, PA 17110 : ' " r ry (717) 540-9170 ' ? C) (717) 540-5481 facsimile Email: PMacdonald-Matthes(a4ssbc-law. com .Attorneys for Plaintiff, Brandon C. Powers R BRANDON C. POWERS, : IN THE COURT OF COMMON PLEAS . CUMBERLAND COUNTY, PENNSYLVANIA PLAINTIFF V. . DOCKET NO. 11 -,S316 0_4w ( `Ter wt VERONICA G. AREVALO AND VARONIO D. CIVIL ACTION-LAW HERNANDEZ DEFENDANTS Notice Under Rule 2973.3 of Judgment and Execution Thereon NOTICE OF DEFENDANTS' RIGHTS TO: Veronica G. Arevalo 640 Lopax Road Harrisburg PA 17112 Varonio D. Hernandez 640 Lopax Road Harrisburg, PA 17112 A judgment for possession of real property has been entered against you and in favor of the Plaintiff without prior notice or hearing based on a confession of judgment contained in a promissory note or other paper allegedly signed by you. The Court has issued and the Sheriff has served a Writ of Possession which directs the Sheriff to remove you from possession of real property. You may have legal rights to defeat the judgment or to prevent you from being removed from the property or to regain possession of the property if you have been removed, if you did not voluntarily, intelligently and knowingly give up your constitutional right to notice and hearing prior to the entry of judgment or if you have defenses or other valid objections to the judgment. ANY PETITION SEEKING RELIEF FROM THE JUDGMENT AND TO REGAIN POSSESSION MUST BE FILED WITHIN THIRTY (30) DAYS AFTER THE DATE ON WHICH THIS NOTICE IS SERVED ON YOU OR YOU MAY LOSE YOUR RIGHTS. If you have been removed from the property without notice or the opportunity for a hearing, you have a right to a prompt court hearing if you claim that you did not voluntarily, intelligently and knowingly give up your rights to notice and hearing prior to the entry of the judgment. If you wish to exercise this right, you must immediately fill out and sign the request for a hearing which accompanies the writ of possession and deliver it to the Sheriff of Cumberland County, at 1 Courthouse Square, Carlisle„ PA 17013. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DON'T HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP: CUMBERLAND COUNTY LAWYER REFERRAL SERVICE 32 S. BEDFORD STREET CARLISLE, PA 17013 (717) 249-3166 BRANDON C. POWERS, PLAINTIFF V. ; VERONICA G. AREVALO AND VARONIO D. HERNANDEZ DEFENDANTS IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA Civil lerw? DOCKET No. 11-8,316 CIVIL ACTION-LAW PETITION TO STRIKE JUDGMENT REQUEST FOR PROMPT HEARING I hereby certify that I did not voluntarily, intelligently and knowingly give up my right to notice and hearing prior to the entry of judgment. I petition the court to strike the judgment on this ground and request a prompt hearing on this issue. I verify that the statements made in this Request for Hearing are true and correct. I understand that false statements herein are made subject o the penalties of 18 Pa.C.S. § 4904 relating to unsworn falsification to authorities. Notice of the Hearing shall be given to me at Street address City, State Telephone number Dated: Defendant(s) RULE 2967. PETITION TO STRIKE JUDGMENT. FORM. BRANDON C. POWERS, PLAINTIFF V. VERONICA G. AREVALO AND VARONIO D. HERNANDEZ DEFENDANTS IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA DOCKET No. l1- 1 (TarVA CIVIL ACTION-LAW CERTIFICATION I hereby certify the precise last known addresses of the parties are as follows: Defendants: Veronica G. Arevalo 640 Lopax Road Harrisburg PA 17112 Varonio D. Hernandez 640 Lopax Road Harrisburg, PA 17112 Plaintiff: Brandon C. Powers, 851 Kiehl Drive Lemoyne, PA 17043 w Respectfully Submitted, Paige Macdonald-Matthes, Esquire SERRATELLI, SCHIFFMAN, & BROWN, P.C. 2080 Linglestown Road Suite 201 Harrisburg, PA 17110 (717) 540-9170 Attorney for Plaintiff Date: November 2, 2011 ? e BRANDON C. POWERS, PLAINTIFF V. VERONICA G. AREVALO AND VARONIO D. HERNANDEZ DEFENDANTS TO: Veronica G. Arevalo 640 Lopax Road Harrisburg PA 17112 Varonio D. Hernandez 640 Lopax Road Harrisburg, PA 17112 : IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA : DOCKET No. << - 8316 Ll i„ i l-I'erwu CIVIL ACTION-LAW NOTICE Pursuant to Pa.R.C.P. 236, you are hereby notified that judgment by confession has been entered against you in the above-captioned matter. Date: It N I? onotary ?s"y t?f r SERRATELLI, SCHIFFMAN & BROWN, P. C. Paige Macdonald-Matthes, Esquire Supreme Court ID No. 66266 2080 Linglestown Road Harrisburg, PA 17110 r,1, (717) 540-9.170 ° (717) 540-5481 facsimile Email: PMacdonald-Matthey@,ssbc-law.com ? '-'r Attorneys for Plaintiff, Brandon C. Powers BRANDON C. POWERS, PLAINTIFF V. L 410 iv 1W)4 VERONICA G. AREVALO AND VARONIO D. HERNANDEZ eA DEFENDANTS 1_)11 , _ IN THE COURT OF COMMON PLEAS CUMBERLAND COUNTY, PENNSYLVANIA DOCKET NO. - U ? g ` '` T k., CIVIL ACTION-LAW PRAECIPE FOR WRIT OF POSSESSION UPON A CONFESSED JUDGMENT TO THE PROTHONOTARY: Please issue a Writ of Possession upon the judgment in ejectment entered by confession in the above matter. ILI) VOUL: I ? Certification I certify that this This Praecipe is based upon a judgment entered by confession, and Notice pursuant to Rule 2973.3 will be served with the Writ of Possession. Respectfully submitted, SERRATELLI, SCHIFFMAN, & BROWN, P.C. mow` Paige Macdonald-Matthes, Esquire Pa. ID Nos. 66266 2080 Linglestown Road, Suite 201 Harrisburg, PA 17110-9670 (717)540-9170 Date: November 2, 2011 O $aq.oo PA Arty a7.50 L' BF l4.00 65 .50 - Pb ATT/ *a.oo DuEo',, P- .2W 717 LorI clf ? 10f 2 WRIT OF POSSESSION (Ejectment Proceedings PRCP3160-3165 etc.) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON C. POWERS 851 KIEHL DRIVE LEMOYNE, PA 17043 VS. No. 11-8316 Civil Term VERONICA G. AREVALO and VARONIO D. HERNANDEZ 640 LOPAX ROAD HARRISBURG, PA 17112 Costs Attorney's $ (p6.50 Plaintiff s $ Prothonotary $ 2.00 COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND: To the Sheriff of Cumberland County, Pennsylvania (l) To satisfy the judgment for possession in the above matter you are directed to deliver possession of the following described property to: (Plaintiff (s)) BRANDON C. POWERS being: (Premises as follows): 700 VALLEY ROAD, ENOLA, PA 17025 (2.) To satisfy the costs against the defendant (s) you are directed to levy upon any property of the defendant (s) and sell his/her (or their) interest therein. Date 11/2i irl_ "(Seal) Davl uell, Prot* notary, Common Pleas Court of Cumberland County, PA 2of2 No 11-8316 Civil Term IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA BRANDON C. POWERS VERONICA G. AREVALO and VARONIO D. HERNANDEZ VS. WRIT OF POSSESSION P.R.C.P. 3160-3165 ETC. Costs Att'y $ &5.50 Plff (s) $ Prothy $ 2.00 Sheriff $ Plaintiff (s) attorney name and address: PAIGE MACDONALD-MATTHES, ESQUIRE ID# 66266 SERRATELLI, SCHIFFMAN & BROWN, PC 2080 LINGLESTOWN ROAD HARRISBURG, PA 17110 717-540-9170 Attorney for Plaintiff (s) Where papers may be served By virtue of this writ, on the day of , . I caused the within named , to have possession of the premises described with the appurtenances, and Sworn and subscribed to before me this Day of __ , Prothonotary So Answers, Sheriff By Deputy John M. Ogden, Esquire ' ~4`0' ~~~~~T'Aky HOLT & OGDEN, LLP ~ ~ V 7 34 North Queen Street .;,.<< a=s_ York, PA 17403 i~. nL )L N D CO A T l` (717) 846-0550 r`E;=ry~SYLVANlA f (717) 846-0687 ogdenjmGgmail.com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS, NO. 11-8316 Plaintiff, CIVIL ACTION - LAW v. VERONICA G. AKEVALO and VARANIO D. HERNDANDEZ, Defendants. PETITION TO STRIKE OFF OR OPEN JUDGMENT BY CONFESSION AND REQUEST FOR STAY OF EXECUTION FROM THE WRIT OF POSSESSION NOW COMES the Defendants, VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, by their counsel, John M. Ogden, of the Law Firm of Holt & Ogden, LLP and files this Petition Strike Off or Open Judgment by Confession and Request for Stay of Execution from the Writ of Possession, stating the following facts in Support thereof: 1. The Plaintiff f iled a complaint in Confession of Judgment against the Defendants on November 2, 2011. 2. The Defendants were served at their homes on or about November 6, 2011 by the Dauphin County Sheriff. 3. The Defendants file this under Pa.R.C.P. 2959. Relating to Striking off or Opening Judgment. Pleadings. Procedure. 4. The Petition is filed in a timely manner. 5. In order to prevail in a petition to open a confessed judgment, the Petitioner must A) act promptly to f ile a petition, B) raise a meritorious defense and C) produce suff icient evidence to require submission of the case to a jury. Rait Partnerhsip, LP v. E Pointe Properties I, L TD, 957 A.2d 1275, 1277 (Pa.Super. 2008). 6. The Defendants filed this petition as soon as practical after being served with the Confession of Judgment by the Dauphin County Sheriff, whom was deputized by the Cumberland County Sheriff. 7. A proposed Answer & New Matter is attached hereto and raises a meritorious defense as Exhibit "A." 8. The Petitioner has raised significant facts which would require submission of the case to the jury. WHEREFORE, the Plaintiff respectfully requests that this Honorable Court strike-off the judgment or open the Judgment. REQUEST FOR STAY OF EXECUTION OF THE WKIT OF POSSESSION 9. The Petitioner incorporates paragraph 1 through 8 herein. 10. The Respondent has alleged in its complaint that it is entitled to judgment in ejectment and a writ of possession of the real estate located at 700 Valley Road, Enola, PA. 11. The Respondent does not have a clear right to possess the real estate as he has not obtained the written permission of the owner, Giuseppe -2- Barone to enter into the Agreement of Sublease and he is in default of the Triple Net Commercial Lease Agreement, dated July 1, 2008. 12. The Petitioners are in possession of the real estate with the express consent of the owner, Giuseppe Barone. , 13. The Petitioners will be immediately and irreparably harmed if the Respondent is permitted to eject them from the real estate without the benefit of a full and fair hearing to determine the merits of the case. 14. If the Respondent are permitted to eject the Petitioners from the real estate, the Respondent would have no right of possession of the real estate as his lease agreement with the owner is in default. 15. The Writ of Possession directs the Cumberland County Sheriff to deliver possession of the real estate to Brandon Powers. Brandon Powers has no right to possess the real estate as he is in default of the Triple Net Commercial Lease Agreement. WHEREFORE, the Plaintiff respectfully requests that this Honorable Court stay execution of the Writ of Possession pending a hearing in this matter. Respectfully Submitted, HOLT & OGDEN, LLP BY: M. ~Ogden -3- John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 ogdenjm@gmail.com IN THE COUKT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS NO. 11-8316 Plaintiff, CIVIL ACTION - LAW v. VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. ANSWER, NEW MATTER & COUNTER CLAIM NOW COMES the Defendants, VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, by their counsel, Holt & Ogden, LLP and . files this Answer stating the following facts: 1. Admitted. 2. Admitted. 3. Admitted. 4. No answer is required. 5. Admitted. COUNT I- CONFESSION OF JUDGMENT IN ASSUMPSIT (Pa.R.C.P.2951) 6. Admitted. -1- 'l EX IBIT 7. Denied. Denied that the Defendants have failed to make the monthly payments under the APA for the months of June 2011, July 2011, August 2011, September 2011 and October 2011. The Defendants have declared the APA null and void due to the fact that the Plaintiff had no right to sell the equipment to the Defendants. Within a few days of the Defendants taking over the property, the Cumberland County Sheriff appeared during the lunch hour and served the Defendants with a Writ of Execution in favor of Ferraro Foods, Inc. Ferraro Foods, Inc., had judgment against Valley Road Restaurant, Inc., and Brothers Pizza and Brandon Powers on November 17, 2009 in the amount of $5,566.32. The Defendants also learned that MidPenn Bank has a UCC-1 filed against all of the personal property inside the real property located at 700 Valley Road, Enola, PA and that the Plaintiff was in default of the underlying note with MidPenn Bank at the time he entered into the APA with the Defendants. MidPenn Bank has come to the property shortly after the Defendants took possession and had an auctioneer inventory the property for sale. In addition to Ferraro Foods and MidPenn Bank, the Defendants learned from the property owner, Giuseppe Barone that the Plaintiff owed water, sewer, taxes, refuse charges and telephone charges and the Defendants right to operate the business was in jeopardy. -2- 8. Denied. The payments are not due to the Plaintiff as he had no right to sell the assets listed in the APA. Paragraph 4(a) of the Asset Purchase Agreement states: 4. REPRESENTATIONS AND WARRANTIES. As a material inducement to the parties to enter into this Agreement and to close hereunder, the parties make the following representation and warrants as of the date of thereof and as of the date of Closing. a. Authority. Buyers and Seller each have full power, right and authority to enter into and perform their respective obligations under this Agreement. Paragraph 4(b) of the Asset Purchase Agreement, states: 4(b) Good Title. Seller owns outright and has good and indefeasible and marketable title to all of the Assets which will be able to [be] delivered contemporaneously with final payment from Buyer, all property free and clear of all liens, security interest, mortgages, pledges, restrictions, prior assignments, encumbrances and claims of any kind, unless otherwise stated in this Agreement. Paragraph 4(c) of the Asset Purchase Agreement states: 4(c) No Litigation, transaction Not a Breach. There is no litigation, proceedin s, demands letters, claims or investigations pending or threatene~ against the parties or relating to or affecting the Business or any of the Assets to be nurchased by Buyer hereunder. There is no litigation pending, or to the knowledge of the Seller, threatened, between or among Seller against it by its employees. These paragraphs were all false at the time the Plaintiff entered into the APA with the Defendants and constituted, by the terms of the APA, drafted by the Plaintiff, material inducements and misrepresentations. There were lawsuits filed and lawsuits threatened that are the very core of the APA at the time that the Plaintiff induced the Defendants to enter into the APA. -3- 9. Denied. Shortly after taking possession of the real estate, the Defendants learned that the Plaintiff had been evicted by the owner of the real estate, Giuseppe Barone, on September 29, 2009. This was 8 months prior to entering into the APA with the Defendants. These documents are incorporated by reference and docketed at 09-6533. The complaint was served on the Plaintiff by the Cumberland County Sheriff on October 29, 2009. Moreover, the Plaintiff had no authority to enter into the Agreement of SubLease (AOS) with the Defendants. The Triple Net Commercial Lease between Giusenpe Barone and Giovanni Barone and Brandon C. Powers, which is referenced in the AOS between the parties requires the landlord to consent, in writing before any AOS is executed. (See paragraph 15 of the Triple Net Commercial Lease). The Plaintiff did not obtain the written consent before entering into the AOS. The Triple Net Commercial Lease is attached to the suit between Barone and Powers. Shortly after the Defendants took possession of the real estate, the owner of the real estate, Giuseppe Barone advised them that they had to pay rent to him and not to Brandon Powers if they wanted to stay in the property. The Defendants did pay the Plaintiff $2,800.00 via a credit card machine which was in the Plaintiff's name and used from May 15, 2011 through June 15, 2011, which was supposed to be -4- applied to the f irst month's rent and which leave a theoretical def icit of $440.00. 10. Denied. The AOS was totally invalid. See paragraph 9. 11. Admitted. By way of further Answer, the letter from the Plaintiff is invalid in that the Plaintiff had no right to AOS the real estate and no right to sell the assets. 12. Denied. The APA is not enforceable as the Plaintiff had no right to sell the assets which were subject to a note, security agreement and UCC-1 in favor MidPenn Bank and are in default. 13. Denied. The AOS is not enforceable as the Plaintiff had no right to enter into the AOS as he did not obtain the landlord's written consent and he was evicted from the real estate at the time that the AOS was executed. Paragraph 14 of the AOS provides that: Sublease shall not be effective until (i) it is executed by Sublandlord and Subtenant, and (ii) approved by Landlord and the holder of any mortgage encumbering the Building. If the Landlord or such mortgagee shall refuse to consent to this Sublease, Sublandlord shall not be obligated to take any action to obtain such consent, and this Sublease thereupon shall be void and of effect. The AOS is null and void. 14. Denied. As stated earlier, the APA is null and void due to material misrepresentations and fraud committed by the Plaintiff. i~ 15. Denied. As stated earlier, the AOS is null and void due to material misrepresentations, fraud committed by the Plaintiff and by its own terms as stated in paragraph 13, above. -5- 16. Denied. The Defendants have received no assets as the result of the APA and therefore, the APA is null and void. In fact, the Defendants are entitled to a refund of the $15,000.00 paid to the Plaintiff under the APA. 17. Denied. The AOS is null and void and therefore no money is owed to the Plaintiff on the AOS. In fact, the Defendants are entitled to a refund of the $2,800.00 paid to the Plaintiff. 18. Denied. The judgment sought is against a natural person. 19. Admitted. 20. Admitted. 21. Admitted. 22. Admitted. WHEAEFOAE, the Defendants hereby pray that this Honorable Court dismiss the complaint for confession of judgment and enter judgment in favor of the Defendants and against the Plaintiff. COUNT II - CONFESSION OF JUDGMENT IN EJECTMENT ' (Pa.R.C.P. 2971) 23. Admitted. 24. Admitted. 25. Denied. The APA and the AOS are null and void due to the misrepresentations of the Plaintiff and by their own terms as explained above. -6- 26. Denied. The Plaintiff is not entitled to any payments under the APA or the AOS. 27. Denied. The Defendants have paid the owner of the real estate rent for September 2011 and October 2011. The Defendants have no legal obligation to pay the Plaintiff rent. 28. Denied. See detailed explanation as to why the AOS is null and void. 29. Admitted that the Plaintiff sent a letter to the Defendants. 30. Denied. The Plaintiff has been evicted from the real estate and has no right to possess the real estate. 31. Denied. The Plaintiff has been evicted from the real estate and has no right to possess the real estate. 32. Denied. The APA and the AOS are null and void. The APA due to the Plaintiff's fraud and and the AOS by its own terms. 33. Denied. The AOS is null and void 34. Denied. The APA and the AOS are null and void. 35. Denied. The APA and the AOS are null and void. 36. Denied. The judgment sought is against a natural person. 37. Admitted. 38. Admitted. 39. Admitted. 40. Admitted. WHEREFORE, the Defendants hereby pray that this Honorable Court -7- dismiss the complaint f or confession of judgment and enter judgment in favor of the Defendants and against the Plaintiff. NEW MATTER 41. The Plaintiff, Brandon Powers committed fraud upon the Defendant, who do not speak english very well. The Plaintiff had no authority to sell the business to them. 42. The Plaintiff, Brandon Powers could not perform under the APA even if he did have the authority to convey the assets to the Defendants. 43. The Plaintiff, Brandon Powers has no authority or right to collect funds from the Defendants as the Defendants have declared the APA null and void due to the fact that the Plaintiff had no right to sell the equipment to the Defendants. 44. The Plaintiff, Brandon Powers had no right to sell the equipment to the Defendants as it was under a levy by the Cumberland County Sheriff under a Writ of Execution in favor of Ferraro Foods, Inc. Ferraro Foods, Inc., against Valley Road Restaurant, Inc., and Brothers Pizza and Brandon Powers, dated November 17, 2009 in the amount of $5,566.32. That writ has since been lifted due to the Defendants advising Ferraro Foods, Inc. of a UCC-1 in favor of MidPenn Bank. 45. The Plaintiff, Brandon Powers had no right to sell the equipment to the Defendants as it was secured by a UCC-1 filed against all of the personal property inside the real property located at 700 Valley Road, -8- MidPenn Bank at the time he entered into the APA with the Defendants. The UCC-1 is of record and filed at file number 008072901927, dated 7/28/2008. 46. The Plaintiff, Brandon Powers committed fraud in the execution of the APA, in that he made representations contained in paragraph 4 of the APA which were material to the transaction at hand and made falsely, with knowledge of its falsity or recklessness as to whether it is true or false and with the intent of misleading another into relying on it and justifiable reliance on the misrepresentation resulting injury proximately caused by the reliance. 47. The Plaintiff, Brandon Powers committed fraud in the execution of the AOS because he had been evicted from the real estate by the owner, Giuseppe Barone, on September 29, 2009, 8 months prior to entering into the AOS with the Defendants. These documents are incorporated by reference and docketed at 09-6533. The complaint was served on the Plaintiff by the Cumberland County Sheriff on October 29, 2009. 48. The Plaintiff, Brandon Powers had no authority to enter into the AOS with the Defendants. The Triple Net Commercial Lease between Giuseppe Barone and Giovanni Barone and Brandon C. Powers, which is referenced in the AOS between the parties requires the landlord to consent, in writing before any AOS is executed. (See -9- landlord to consent, in writing before any AOS is executed. (See paragraph 15 of the Triple Net Commercial Lease). The Plaintiff did not obtain the written consent before entering into the AOS. The Triple Net Commercial Lease is attached to the suit between Barone and Powers. 49. The AOS is not enforceable as the Plaintiff had no right to enter into the AOS as he did not obtain the landlord's written consent and he was evicted from the real estate at the time that the AOS was executed. Paragraph 14 of the AOS provides that: Sublease shall not be effective until (i) it is executed by Sublandlord and Subtenant, and (ii) approved by Landlord and the holder of any mortgage encumbering the Building. If the Landlord or such mortgagee shall refuse to consent to this Sublease, Sublandlord shall not be obligated to take any action to obtain such consent, and this Sublease thereupon shall be void and of effect. The AOS is null and void by its own terms. 50. The Plaintiff, Brandon Powers has history of defrauding persons using the real estate which is the subject of this action, located at 700 Valley Road, Enola, PA 17025. The Plaintiff defrauded a defendant, Anthony Northrup out of $10,000.00 in similar scheme. (See Cumberland County Docket No. 08-7352). 51. The Defendants plead all affirmative defenses available as a New Matter. WHEREFORE, the Defendants hereby pray that this Honorable Court dismiss the complaint for confession of judgment and enter judgment in -10- COUNTERCLAIM COUNT I - FRAUD 53. The Defendants incorporate paragraphs 1 through 52 into this count. 54. The Plaintiff, Brandon Powers committed f raud in the execution of the APA, in that he made representations contained in paragraph 4 of the APA which were material to the transaction at hand and made falsely, with knowledge of its falsity or recklessness as to whether it is true or false and with the intent of misleading another into relying on it and justifiable reliance on the misrepresentation resulting injury proximately caused by the reliance. 55. As a result of the Plaintiff's fraud, the Defendants have suffered damages in the amount of $15,000.00 representing the down payment and $2,800.00 representing payments towards the first month's rent under the illegal sublease and other unliquidated damages. WHEREFORE, the Defendants hereby pray that this Honorable Court enter judgment in favor of the Defendant and against the Plaintiff in the amount of $17,800, together with other such damages as the court deems to be proper and costs together with costs of suit. COUNT II UNJUST ENRICHMENT 56. The Defendants incorporate paragraphs 1 through 53 into this count. -11- ,I 56. The Defendants incorporate paragraphs 1 through 53 into this count. 57. The Plaintiff fraudulently sold to the Defendants assets under an APA and entered into an AOS which he had no right to enter into. 58. The Defendants paid to the Plaintiff the sum of $15, 000. 00 under the APA, but did not receive any assets under the APA because the Plaintiff had no right to sell the assets, as they were secured by a UCC- 1 and the security agreement was in default at the time of the execution of the APA. 59. The Defendants paid to the Plaintiff the sum of $2,800.00 under the AOS, but did not receive any protection because the AOS was null and void by its own terms (see paragraph 14 of the AOS) as landlord refuses to consent, leaving the Defendants at-risk. 60. The Plaintiff would be unjustly enriched if he were permitted to retain $15,000.00 under the APA and $2,800.00 under the AOS when had unclean hands, committed fraud and had no right or authority to sell the assets or sublease the real estate. WHEREFORE, the Defendants hereby pray that this Honorable Court enter judgment in f avor of the Defendant and against the Plaintiff in the amount of $17,800, together with other such damages as the court deems to be proper and costs together with costs of suit. Respectfully Submitted, HOLT & OGDEN, LLP DATED: -12c ~ BY: ohn M. Ogden -13- John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 ogdenjm@gmail.com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS NO. 11-8316 Plaintiff, CIVIL ACTION - LAW v. VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. CERTIFICATION OF SERVICE I am the attorney for the above captioned party in this action, and hereby certify that on this date, I served a true and correct copy of the Petition to Strike off or Open Judgment by Confession and Request for Stay of Execution from the Writ of Possession and proposed Order through the United States Mail, first class, postage pre-paid, to the following address: PAIGE MACDONALD-MATHES, ESQUTAE SERRATELLI, SCHIFFMAN & BROWN, PC 2080 LINGELSTOWN ROAD HARRISBURG, PA 17110 Respectfully Submitted, HOLT & OGDEN, LLP . DATED : BY: SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson FILED-OFFICE y , o THE PROTHOI;OTAFt";. Sheriff Jody S Smith N I I NOV 16 AM 9' 24 Chief Deputy Richard W Stewart CUMBERLAND COUHT`? Solicitor PENNSYLVANIA Brandon C. Powers Case Number vs. 2011-8316 Veronica G. Arevalo (et al.) SHERIFF'S RETURN OF SERVICE 11/07/2011 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Veronica G. Arevalo, but was unable to locate her in his bailiwick. He therefore deputized the Sheriff of Dauphin County, Pennsylvania to serve the within Notice Pursuant to 42 Pa.C.S. 2737.1, Rule 2967 Petiton to Strike Judgment Form, Notice Under Rule 2973.3, Confession of Judgment for Money, Notice and Complaint in Confession of Judgment and Writ of Possession according to law. 11/07/2011 Ronny R. Anderson, Sheriff who being duly sworn according to law states that he made a diligent search and inquiry for the within named defendant, to wit: Varonio D. Hernandez, but was unable to locate him in his bailiwick. He therefore deputized the Sheriff of Dauphin County, Pennsylvania to serve the within Notice Pursuant to 42 Pa.C.S. 2737.1, Rule 2967 Petiton to Strike Judgment Form, Notice Under Rule 2973.3, Confession of Judgment for Money, Notice and Complaint in Confession of Judgment and Writ of Possession according to law. -- 11/09/2011 11:45 AM - Dauphin County Return: And now November 9, 2011 at 1145 hours I, Jack Lotwick, Sheriff of Dauphin County, Pennsylvania, do hereby certify and return that I served a true copy of the within Notice Pursuant to 42 Pa.C.S. 2737.1, Rule 2967 Petiton to Strike Judgment Form, Notice Under Rule 2973.3, Confession of Judgment for Money, Notice and Complaint in Confession of Judgment and Writ of Possession, upon the within named defendant, to wit: Varonio D. Hernandez by making known unto Varonio Hernandez, Brother of Defendant at 640 Lopax Road, Harrisburg, Pennsylvania 17112 its contents and at the same time handing to him personally the said true and correct copy of the same. 11/09/2011 11:45 AM - Dauphin County Return: And now November 9, 2011 at 1145 hours I, Jack Lotwick, Sheriff of Dauphin County, Pennsylvania, do hereby certify and return that I served a true copy of the within Notice Pursuant to 42 Pa.C.S. 2737.1, Rule 2967 Petiton to Strike Judgment Form, Notice Under Rule 2973.3, Confession of Judgment for Money, Notice and Complaint in Confession of Judgment and Writ of Possession, upon the within named defendant, to wit: Veronica G. Arevalo by making known unto Varonio Hernandez, adult in charge at 640 Lopax Road, Harrisburg, Pennsylvania 17112 its contents and at the same time handing to him personally the said true and correct copy of the same. SHERIFF COST: $53.00 November 14, 2011 SO ANSWERS, RON R ANDERSON, SHERIFF iC colln`: y,iUllG j`'E;E t(. to eoso't. ir.... 4- John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 ogdenjm@gmail.com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS Plaintiff, v. VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. NO. 11-8316 CIVIL ACTION - LAW JUDGE ASSIGNED: GUIDO RELATED CASE: 09-6533 ANSWER TO PLAINTIFF'S MOTION TO STRIKE DEFENDANTS' PETITION TO STRIKE OFF OR OPEN JUDGMENT BY CONFESSION AND REQUEST FOR STAY OF EXECUTION FROM THE WRIT OF POSSESSION FOR NON-COMPLIANCE WITH THE PENNSYLVANIA RULES OF CIVIL PROCEDURE. Filed By: John M. Ogden, Esquire, for the Defendants ATTORNEY FOR PLAINTIFF FOR THE DEFENDANTS: Paige Macdonald-Mathes, Esquire Serratelli, Schiffman & Brown, Pc 2080 Lingelstown Road Harrisburg, Pa 17110 (717) 540-9170 F (717) 540-5481 John M. Ogden, Esquire Holt & Ogden, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 -ap John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 ogdenjm@gmail.com F iLED-OF F IC C F THE PROTHONOT ."11 ZOI I NOY 23 A1410:52 CUMBERLAND COUNT'i' PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS, Plaintiff, NO. 11-8316 CIVIL ACTION - LAW V. VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. ANSWER TO PLAINTIFF'S MOTION TO STRIKE DEFENDANTS' PETITION TO STRIKE OFF OR OPEN JUDGMENT BY CONFESSION AND REQUEST FOR STAY OF EXECUTION FROM THE WRIT OF POSSESSION FOR NON-COMPLIANCE WITH THE PENNSYLVANIA RULES OF CIVIL PROCEDURE. NOW COMES the Defendants, VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, by their counsel, John M. Ogden, of the Law Firm of Holt & Ogden, LLP and files this Answer to Plaintiff's Petition to Strike Off or Open Judgment by Confession and Request for Stay of Execution from the Writ of Possession, stating the following facts in Support thereof: 1. Admitted that the parties entered into an Asset Purchase Agreement (APA). Denied that the Plaintiff had the right to enter into the agreement as he did not have the authority or the ability to alienate the assets due to the fact that he was in default of the security agreement securing the assets. 2. Admitted that the parties entered into an Agreement of Sublease (AOS). Denied that the Plaintiff had the right to enter into the AOS as he was in default of his lease agreement with the landlord and the terms of the lease agreement prohibited subleasing without first obtaining written consent to do so. 3. Denied. The Defendants are not in default of the AOS or the APA. It is the Plaintiff who is in default. 4. Admitted. 5. Admitted. 6. Admitted. 7. Admitted. 8. Denied. As stated in the Petition to Strike/ Open all of the reasons are set forth as to why the AOD and APA are fraudulent and null and void. 9. Denied. The Plaintiffs did serve the Defendants with the notices required under Pa.R.C.P. 2973.3. 10. Admitted that the Rule cited, 2973.13(b) is as stated. However, the Defendants Petition to Strike/Open is not filed under issues related to whether the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of judgment. The Petition to Strike/ Open is filed under Pa.R.C.P. 2959, relating to -2- Striking-off or Opening Judgment; Pleadings; Procedure, which states in part: "Relief from a judgment by confession shall be sought by petition." 11. Denied. Pa.R.C.P. 2973.3 provides for a petition to strike limited to whether the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of judgment. In that case, the Request for Prompt Demand is served on the Sheriff. 12. Denied. Pa.R.C.P. 2973.3 provides for a petition to strike limited to whether the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of judgment. In that case, the Request for Prompt Demand is served on the Sheriff. 13. Denied. The Defendants did not fail to provide the Sheriff with said notice of prompt hearing under Pa.R.C.P. 2973.3, which provides for a petition to strike limited to whether the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of judgment. The Defendants are seeking to strike/open the judgment Pa.R.C.P. 2959, which requires that all grounds be stated in one petition. Section 2959(f) states that: "The lien of the judgment or any levy or attachment shall be preserved while the proceedings to strike-off or open the judgment is pending." 14. Denied. The Defendants Petition to Strike/Open includes a Request for a Hearing and a Request for Stay of Execution of the Writ of -3- Possession. The language concerning the Request for a Prompt Hearing concerns the issue limited to whether the defendant voluntarily, intelligently and knowingly waived the right to notice and hearing prior to the entry of judgment, under Pa.R.C.P. 2959(a)(2) and Pa.R.C.P. 2973.3(b). 15. Denied. See Pa.R.C.P. 2959 and the answer above. 16. Denied. There is no non-compliance with the procedures. The Defendants are not proceeding under Pa.R.C.P. 2973.3(b) or under Pa.R.C.P. 2967. Rather, the Defendants are proceeding under Pa.R.C.P. 2959. 17. Admitted that at the time of the filing, the matter was not assigned to a judgment, however as of this date the Honorable Edward E. Guido has been assigned. 18. Admitted. The Defendants request an immediate hearing on the motion. WHEREFORE, the Defendants respectfully request that the Honorable Court dismiss the motion and grant the Defendants request for an immediate stay and to preserve the status quo. Respectfully Submitted, HOLT & OGDEN, LLP John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0550 ogdenjm@gmail.com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS NO. 11-8316 Plaintiff, CIVIL ACTION - LAW V. VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. CERTIFICATION OF SERVICE I am the attorney for the above captioned party in this action, and hereby certify that on this date, I served a true and correct copy of the Answer to Motion to Strike Defendants' Petition to Strike off or Open Judgment by Confession and Request for Stay of Execution from the Writ of Possession for Non-Compliance with the Pennsylvania Rules of Civil Procedure, through the United States Mail, first class, postage pre-paid, or hand delivery to the following address: PAIGE MACDONALD-MATHES, ESQUIRE SERRATELLI, SCHIFFMAN & BROWN, PC 2080 LINGELSTOWN ROAD HARRISBURG, PA 17110 Respectfully Submitted, HOLT & OGDEN, LLP DATED: BY: I A C rv o t ?! -4 7 M i .7p r .Z rC ?'D tV r7l 'ICJ 6 C-) IN THE COURT OF COMMON CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS Plaintiff, V. VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. CIVIL ACTION - LAW NO. 11-8316 ORDER GRANTING TEMPORARY STAY OF EXECUTION OF THE WRIT OF POSSESSION AND ORDER FOR HEARING ON THE PETITION TO STRIKE OFF OR OPEN JUDGMENT BY CONFESSION AND REQUEST FOR STAY OF EXECUTION FROM THE WRIT OF POSSESSION , - VA6ft this a ?day of Pore* AND NOW , 2011, upon consideration of the Petition to Strike off or Open Judgment by Confession and Request for Stay of Executi n from the Writ of Possession, a,. /i40A? triaL.LM eu f The Sheriff of Cumberland County shall not execute the Writ of Possession until rther der court, otpX0D 1 , i A hearing is set for the 91 tA day of 201 1 in courtroom number a of the Cumberland County Courthouse. e6ds ....rtt" e ,' y opene an t o Defen ant M57 av BY THE COURT, J. DISTRIBUTION: NIOJ'- d 6,aige MacDonald, Esquire eqie* << John M. Ogden, Esquire i11ail?o t BRANDON C. POWERS, PLAINTIFF V. VERONICA G. AREVALO AND VARONIO D. HERNANDEZ DEFENDANTS : IN THE COURT OF COMMON PLEAS . CUMBERLAND COUNTY, PENNSYLV?IIA -oX ° r+y CD : DOCKET No. 11-8316 -C?-' `?' `?' CIVIL ACTION-LAW C7 i. ORDER AND NOW this*da of ??? Y 2011, upon consideration of the Plaintiff's Motion to Strike Defendants' November 16, 2011, Petition to Strike Off or Open Judgment by Confession and Request for Stay of Execution from the Writ of Possession based on Defendants' non-compliance with the Pennsylvania Rules of Civil Procedure and s ecifically Pa. R.Civ.P 2973.3 Si??M?? 4? V t?l ,.0?1 J 'V de, rN . A- -, ?.?-?? . BY THE T: J. Distribution: ,/ Paige Macdonald-Matthes, Esquire, Serratelli, Schiffman, & Brown, P.C. 2080 Linglestown Road, Suite 201, Harrisburg, PA 17110 ,i John M. Ogden, Esquire, Holt & Ogden, LLP, 34 N Queen Street, York, PA 17403 3 1 ? pu`'i"`t ?`o? ( ?Q N? !p SHERIFF'S OFFICE OF CUMBERLAND COUNTY Ronny R Anderson Sheriff Jody S Smith Chief Deputy ?ptS5tlt' ?' ::l??tltlt?,f'?t? C it HE PPTTHO19 ? E I NOY 28 PH 4: ! 3 Richard W Stewart Solicitor °'; MBERLANG, CUUN,r'-i PEMSYLVANIA Brandon C. Powers Case Number vs. 2011-8316 Veronica G. Arevalo (et al.) SHERIFF'S RETURN OF SERVICE 11/21/2011 11:30 AM - Deputy Tim Black, being duly sworn according to law, served the requested Writ of Possession by "personally" handing a true and attested copy to a person representing themselves to be the Defendant, to wit: Veronica G. Arevalo at 700 Valley Road, East Pennsboro Twp, Enola, PA 17025, Cumberland County, informed Defendant of contents of same and posted Sheriffs Notice on premises. 11/22/2011 Deputy Tim Black, being duly sworn according to law, served the requested Writ of Possession by handing a true and attested copy to a person representing themselves to be the adult in charge for Defendant, to wit: Varonio D. Hernandez at 700 Valley Road, East Pennsboro Twp, Enola, PA 17025, Cumberland County. 11122/2011 By virtue of this writ, Ronny R. Anderson, Sheriff caused the within named Plaintiff to have possession of the premises described as 700 Valley Road, Enola, PA 17025. SHERIFF COST: $85.00 November 22, 2011 SO ANSWERS, RON R ANDERSON, SHERIFF eel, .0% « John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 ogdenjm@gmail.com FILED-OFFICE OF THE PROTHONOTAR { 2011 DEC 27 PM 12: 40 CUMBERLAND COUNTY PENNSYLVANIA IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS NO. 11-8316 Plaintiff, CIVIL ACTION - LAW V. JUDGE ASSIGNED: GUIDO RELATED CASE: 09-6533 VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. PRAECIPE TO WITHDRAW REQUEST FOR STAY OF EXECUTION FROM THE WRIT OF POSSESSION FILED NOVEMBER 16, 2011 Filed By: John M. Ogden, Esquire, for the Defendants ATTORNEY FOR PLAINTIFF: Paige Macdonald-Mathes, Esquire Serratelli, Schiffman & Brown, Pc 2080 Lingelstown Road Harrisburg, Pa 17110 (717) 540-9170 F (717) 540-5481 FOR THE DEFENDANTS: John M. Ogden, Esquire Holt & Ogden, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 s Respectfully Submitted, DATED: 12- HOLT & OGDEN, LLP -2-0 BY: John M. Ogden, Esquire John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 o_gdenjm@gmail.com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS Plaintiff, NO. 11-8316 CIVIL ACTION - LAW V. JUDGE ASSIGNED: GUIDO VERONICA G. AREVALO and RELATED CASE: 09-6533 VARANIO D. HERNDANDEZ, Defendants. PRAECIPE TO WITHDRAW REQUEST FOR STAY OF EXECUTION FROM THE WRIT OF POSSESSION FILED NOVEMBER 16, 2011 TO THE PROTHONOTARY: Please withdraw the Petition for Request for Stay of Execution from the Writ of Possession Filed November 16, 2011 as the Defendants have been evicted from the property on December 13, 2011 by the Landlord, but not the Petition to Strike off or Open Judgment by Confession. 44 John M. Ogden, Esquire HOLT & OGDEN, LLP 34 North Queen Street York, PA 17403 (717) 846-0550 f (717) 846-0687 ogdenjm@gmail. com IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY PENNSYLVANIA BRANDON C. POWERS Plaintiff, NO. 11-8316 CIVIL ACTION - LAW V. JUDGE ASSIGNED: GUIDO RELATED CASE: 09-6533 VERONICA G. AREVALO and VARANIO D. HERNDANDEZ, Defendants. CERTIFICATION OF SERVICE I am the attorney for the above captioned party in this action, and hereby certify that on this date, I served a true and correct copy of the Praecipe to Withdraw Request for Stay of Execution from the Writ of Possession Filed November 16, 2011, on the date indicated below, through the U.S. Postal Service, postage paid, to the following address: PAIGE MACDONALD-MATTHES SERRATELLI, SCHIFFMAN & BROWN, PC 2080 LINGELSTOWN ROAD HARRISBURG, PA 17110 Re ectfully Submitted, HO T & OGDEN, LLP DATE: . Ogden, Esquire