HomeMy WebLinkAbout05-4091
In the Court of Common Pleas
Cumberland County, Pennsylvania
Jeffery L. Souder
and
Mary Ellen Robinson
Plaintiffs
Civil Action-Equity and Law
v.
Civil Division
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
No. DS - ~091
Ct~d_ '702-"1
NOTICE
YOU HA VB BEEN SUED IN COURT. If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after this Complaint and Notice are
served, by entering a written appearance personally or by attorney and filing in writing with the Court
your defenses or objections to the claims set forth against you. You are warned that if you fail to do
so the case may proceed without you and a judgment may be entered against you by the Court without
further notice for any money claimed in the Complaint or for any other claim or relief requested by
the Plaintiff. You may lose money or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LA WYER AT ONCE. IF YOU DO NOT
HA VB A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS
OFFICE CAN PROVIDE YOU WITH INFORMA nON ABOUT HIRING ALA WYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO
PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MA Y OFFER LEGAL
SERVICES TO EUGIBLE PERSONS AT A REDUCED FEE OR NOT FEE.
Cumberland County Bar Association
2 Liberty A venue
Carlisle, PA 17013
(717) 249-3166
In the Court of Common Pleas
Cumberland County, Pennsylvania
Jeffery L. Souder
and
Mary Ellen Robinson
Plaintiffs
Civil Action-Equity and Law
v.
Civil Division
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
No. 0 S -
Cu~t-r&
JURY TRIAL DEMANDED
COMPLAINT
AND NOW, comes the Plaintiffs, Jeffery Souder and Mary Ellen Robinson by
their legal counsel, Keefer, Wood, Allen & Rahal, LLP, and pleads the following
Complaint:
THE PARTIES
1. The Plaintiff, Mary Ellen Robinson (herein "Robinson"), is an adult individual with
an address of 5845 Spring Tree Court; Enola, Cumberland County,
Pennsylvania.
2. The Plaintiff, Jeffery L. Souder (herein "Souder") is an adult individual with an
address of 5845 Spring Tree Court; Enola, Cumberland County, Pennsylvania.
3. The McNaughton Company (herein "Defendant") is a Pennsylvania corporation
with a principal address of 4400 Deer Path Road, Suite 201; Harrisburg, Dauphin
County, Pennsylvania.
4. McNaughton Homes is a fictitious name of The McNaughton Company.
5. McNaughton Homes, Inc. is a fictitious name of The McNaughton Company.
VENUE
6. Venue is permitted in Cumberland County under Pa.R.C.P. 2179(a).
FACTS
7. Robinson and Souder (herein collectively, "the Plaintiffs") are husband and wife.
8. The Plaintiffs entered into a contract with Defendant on December 28, 1996 to
buy Lot #43 in the Westbury development ("the Lot"), Enola, Pennsylvania and to
construct a home on the Lot ("the Sales Agreement"). A true and correct copy of
the Sales Agreement is attached hereto as Exhibit "A" and made a part hereof as
though fully set forth herein.
9. The Westbury development ("Westbury") contains over 100 lots.
10. McNaughton sold over 12 lots in Westbury in the first 12 months after the sale of
the first Lot in Westbury and in every 12 month period thereafter.
11. On March 4, 1997, McNaughton transferred the Lot to the Plaintiffs in exchange
for $185,000 purchase price.
12. Pursuant to the contract, McNaughton built a house on the Lot ("the Residence"
and herein collectively "the Residence" and the Lot will be referenced as "the
Real Estate").
13. Plaintiffs purchased the Real Estate primarily for personal, family or household
use.
14. Unbeknownst to Plaintiffs, on the date they took possession of the Residence,
the shower in the bathroom in the master bedroom of the Residence ("the
Shower") was not hooked up to the rest of the plumbing in the Residence.
15. Unbeknownst to Plaintiffs, at the date they took possession of the Residence,
the Resident's Shower water could not be channeled out of the house and into
the sewer system because the pipe or pipes (herein "the Unconnected Pipe")
leading from the drain of the Shower into a crawl space with a barrier board
opening in the basement ("the Crawl Space") was unconnected to the rest of the
Residence's plumbing.
16. Unbeknownst to Plaintiffs, from the date they moved in the house until May 23,
2004, all of the water from the Shower drained into the Crawl Space.
17. Had McNaughton disclosed to Plaintiffs that the Shower was not properly
connected to the Residence's plumbing, they would not have purchased the
Residence.
18. During construction of the Residence, McNaughton and/or its agent or agents,
left the Unconnected Pipe, so that all of the Shower's water was channeled
directly into the Crawl Space and not out to the sewer.
19. During construction on the Residence, McNaughton and/or its agent or agents
actively concealed the plumbing problem by covering up the Unconnected Pipe
with insulation.
20. The Crawl Space has no doors to allow entry.
21. McNaughton and/or its agent or agents communicated to Plaintiffs that there was
never any reason to enter the Crawl Space.
22. The punch list prepared by McNaughton did not include the necessary
connection of or repair of the Unconnected Pipe.
23. McNaughton never warned Plaintiffs about the Unconnected Pipe.
24. McNaughton represented to Plaintiffs that prior to Plaintiffs moving into the
Residence, McNaughton's construction field manager would conduct his own
inspection based on an extensive check-list, and that during the inspection, the
construction field manager would review every component of the Residence to
l
make sure it would meet McNaughtons' standards before the Residence would
be turned over to Plaintiffs.
25. McNaughton represented to Plaintiffs that during the new home orientation
meeting, the construction field manager would give them a thorough explanation
of their responsibilities for maintaining the Residence.
26. During the new home orientation meeting, McNaughton's construction field
manager advised Plaintiffs not to enter into the Residence's crawl spaces.
27. During the meeting between Plaintiffs and McNaughton's construction field
manager, referred to by McNaughton as the "new home orientation meeting",
Plaintiffs were not shown the Crawl Space nor were they advised that they
should look into the Crawl Space.
28. During the new home orientation meeting, McNaughton's construction field
manager misrepresented the condition of the Residence by telling Plaintiffs that
the Residence was in move-in condition, with all major systems complete, and
Residence was ready to be inhabited by Plaintiffs.
29. During the new home orientation meeting, McNaughton failed to disclose a
defective condition of the Residence, the Unconnected Pipe.
30. During the new home orientation meeting, McNaughton's construction field
manager misrepresented the condition of the Residence's plumbing by indicating
to the Plaintiffs all showers and tubs were complete.
31. On June 20,1997, the date on which McNaughton turned over possession of the
Residence to Plaintiffs ("the Closing"), McNaughton and/or its agent or agents
represented the condition of the Residence to the Plaintiffs that the Residence
was in move-in condition, with all major systems complete, and ready to be
inhabited by Plaintiffs.
32. At the Closing, McNaughton and/or his agent or agents failed to disclose a
defective condition of the Residence, the Unconnected Pipe.
33. At the Closing, McNaughton and/or its agent or agents did not advise Plaintiffs
about the Unconnected Pipe.
34. Plaintiffs relied on McNaughton's expertise in home construction and did not
inspect the Crawl Space themselves at the time of the new home orientation
meeting or Closing.
35. Souder entered the Crawl Space for the first time on May 23, 2004 because his
water bill was unusually high, so he wanted to check whether the pipe connected
to the outside faucet was cracked.
36. When Souder entered the Crawl Space on May 23, 2004, he found that the pipe
to the outside faucet was not cracked but he saw a significant amount of black
mold along the foundation wall and on the insulation in the Crawl Space.
3? Souder then pulled down the black, moldy insulation to try to determine the
source of the mold.
38. When Souder pulled down the black, moldy insulation, he saw the Unconnected
Pipe.
39. The Plaintiffs turned on and off the upstairs water faucets and showers and
determined that the Unconnected Pipe channeled the Shower's waste water into
the Crawl Space.
40. The Unconnected Pipe constitutes a latent defect.
41. The Plaintiffs have not used the Shower since learning that the Unconnected
Pipe channeled waste water into the Crawl Space.
42. Upon further inspection, the Plaintiffs discovered that the mold from the Crawl
Space had spread from the Crawl Space insulation into the Residence's
basement, heat ducts, floor joists, and carpet.
43. The mold in the Residence's heat ducts have caused mold to be airborne, and
hence breathed in by the Plaintiffs.
44. The Plaintiffs have experienced health problems caused by the mold created
from the Shower water draining into the Crawl Space.
45. Water being expelled from the Unconnected Pipe compromised the foundation
of the Residence's back yard patio causing the patio to sag.
46. The Plaintiffs first contacted McNaughton on or about May 24, 2004, informing it
of the problem.
47. The Plaintiffs and Plaintiffs' counsel repeatedly attempted to resolve this matter
from on or around June 1, 2004 until the filing of this Complaint.
48. McNaughton has refused to do anything to solve problem.
49. Substantial remediation needs to be complete in order to put the Residence in
the condition it would have been but for the Unconnected Pipe.
COUNT I
PLAINTIFFS v. MCNAUGHTON
BREACH OF CONTRACT
50. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
51. Delivering the Residence to Plaintiffs at Closing with the Unconnected Pipe
constitutes a material breach of the Sales Agreement.
52. McNaughton's failure to inform Plaintiffs of the existence of the Unconnected
Pipe constitutes a material breach of the Sales Agreement.
53. Plaintiffs have fully complied with their obligations under the Sales Agreement.
54. Plaintiffs have lost the benefit of the bargain of the Sales Agreement as the
result of McNaughton's breaches of the Sales Agreement.
55. As a direct and foreseeable result of McNaughton's material breaches of the
Sales Agreement, the Plaintiffs have suffered and continue to suffer, direct,
incidental, and consequential damages.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs arising from
McNaughton's breaches of the Sales Agreement; (2) in the alternative, an order
entering judgment in favor of the Plaintiffs and against McNaughton in the an amount in
excess of the Court's arbitration of limit of $35,000 and (3) together with either of the
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, and other
appropriate remedies under Pennsylvania law, in an amount to be determined by the
Court.
COUNT II
PLAINTIFFS v. MCNAUGHTON
FRAUDULENT MISREPRESENTATION
56. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
57. McNaugton and/or its agent or agents had actual and/or constructive knowledge
of the Unconnected Pipe.
58. Despite its actual or constructive knowledge of the problem of the Unconnected
Pipe, McNaughton and/or its agent or agents failed to disclose the problem to
Plaintiffs.
59. Instead, McNaughton by and through its employees and agents made the
following material misrepresentations both at the new home orientation meeting
and at the Closing that the (1) plumbing was complete, (2) all home systems
were complete, (3) the entire Residence was in move-in condition, and (4) the
only known defects were contained on the punch-list--when it had actual and/or
constructive knowledge that this was false, with the intent to induce Plaintiffs to
purchase and take possession of the Real Estate.
60. Plaintiffs relied on the misrepresentations concerning the condition of the
Residence made by McNaughton by and through its employees and agents.
61. Plaintiffs' reliance of McNaughton's representations concerning the condition of
the Residence was reasonable.
62. McNaughton's inspection of the work of the person who put in the Unconnected
Pipe was either omitted or performed recklessly.
63. McNaughton or its agent or agents' decision to conceal the Unconnected Pipe
with insulation was either intentional or reckless.
64. The Plaintiffs would not have purchased and taken possession of the Real
Estate if they had known of the problem with the Unconnected Pipe.
65. The Plaintiffs have suffered injury as a direct result of fraudulent
misrepresentations by McNaughton.
66. The repairs necessary to remediate the damage caused by the Unconnected
Pipe and the mold it has caused are substantial.
67. Plaintiffs have been deprived the benefit of the bargain because they were
fraudulently induced to purchase and take possession of the Real Estate.
68. Further, in making its fraudulent misrepresentations, McNaughton has acted
outrageously and willfully with malice and reckless disregard toward the rights of
the Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from
McNaughton's fraudulent misrepresentations; (2) in the alternative, an order entering
judgment in favor of the Plaintiffs and against McNaughton in the an amount in excess
of the Court's arbitration of limit of $35,000 and (3) together with either of the foregoing,
an order finding McNaughton liable to the Plaintiffs for costs, consequential and punitive
damages, reasonable attorneys' fees, and other appropriate remedies under
Pennsylvania law, in an amount to be determined by the Court.
COUNT III
PLAINTIFFS v. MCNAUGHTON
NEGLIGENT MISREPRESENTATION
69. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
70. McNaughton and/or its agent or agents failure to inspect the work of the person
who left the pipe unconnected was negligent.
71. The decision of McNaughton and/or its agent or agents to cover over the
Unconnected Pipe with insulation was negligent.
72. McNaughton negligently misrepresented that: (1) the plumbing was complete;
(2) all home systems were complete; (3) the Residence was in move-in
condition; and (4) the only known defects were contained in the punch list where
these were false, negligent, and material, and were made to induce the Plaintiffs
to purchase and take possession of the Real Estate.
73. McNaughton's inspection practices and that of its employees, agents, and sub-
contractors work are negligent.
74. McNaughton's inspection of the work which left the Shower unconnected to the
plumbing was negligent.
75. In reliance on McNaughton's false representations concerning the condition of
the Residence, Plaintiffs purchased the Real Estate.
76. Had McNaughton identified the problem of the Unconnected Pipe, Plaintiffs
would not have purchased and taken possession of the Real Estate.
77. Due to the negligent misrepresentations of McNaughton and/or its agent or
agents, the Plaintiffs have been denied the benefit of the bargain of their
purchase of the Residence.
78. Due to the negligent misrepresentations of McNaughton and/or its agent or
agents, the Plaintiffs have been directly and significantly damaged.
79. McNaughton, in making negligent misrepresentations, have acted with gross
negligence and outrageously and willfully with malice and reckless disregard
towards the rights of Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from
McNaughton's negligent misrepresentations; (2) in the alternative, an order entering
judgment in favor of the Plaintiffs and against McNaughton in the an amount in excess
of the Court's arbitration of limit of $35,000: and (3) together with either of the
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, consequential
and punitive damages, reasonable attorneys' fees, and other remedies under
Pennsylvania law, in an amount to be determined by the Court.
COUNT IV
PLAINTIFFS v. MCNAUGHTON
INNOCENT MISREPRESENTATION
80. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
81. McNaughton andlor its agent or agents misrepresented that: (1) the plumbing in
the Residence was complete; (2) all home systems were complete; (3) the house
was in move-in condition; and (4) the only defects of the Residence were listed
on the punch list.
82. These representations were false, material, and made to induce Plaintiffs to
purchase and take possession of the Real Estate.
83. Acting in justifiable and detrimental reliance on these incomplete, and inaccurate
representations, Plaintiffs purchased the Real Estate.
84. Due to misrepresentations by McNaughton, the Plaintiffs have been deprived of
the benefit of the bargain they were induced to enter in purchasing the Real
Estate.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from
McNaughton's innocent misrepresentations; (2) in the alternative, an order entering
judgment in favor of the Plaintiffs and against McNaughton in the an amount in excess
of the Court's arbitration of limit of $35,000: and (3) together with either of the
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, consequential
and punitive damages, reasonable attorneys' fees, and other remedies under
Pennsylvania law, in an amount to be determined by the Court.
COUNT V
PLAINTIFFS v. MCNAUGHTON
NEGLIGENCE
85. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
86. McNaughton's employee or agent was negligent in installing the plumbing by
leaving the Unconnected Pipe to drain directly into the crawl space rather than to
be channeled out of the Residence by the Residence's plumbing.
87. McNaughton and/or its agent or agents inspection of the work of the person who
left the pipe unconnected was unreasonable and below the standard in the
industry in the local area and elsewhere.
88. McNaughton and/or its agent or agents failure to inspect the work of the person
who left the pipe unconnected was unreasonable and below the standard in the
industry in the local area and elsewhere.
89. McNaughton or its agent or agents decision to cover over the Unconnected Pipe
with insulation was unreasonable and below the standard in the industry in the
local area and elsewhere.
90. McNaughton and/or its agent or agents negligence directly caused significant
damages to Plaintiffs
WHERFORE, the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for costs, reasonable attorney' fees, consequential and punitive damages, and
other appropriate remedies under Pennsylvania law, in an amount to be determined by
the Court.
COUNT VI
PLAINTIFFS v. MCNAUGHTON
VIOLATION OF THE INTERSTATE LAND SALES ACT
91. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
92. The Sales Agreement did not obligate McNaughton to complete the construction
of the Residence within two years.
93. McNaughton and/or its agent or agents employed a device, scheme, and artifice
to defraud Plaintiffs concerning the condition of their Residence both before and
after Closing.
94. McNaughton obtained Plaintiffs money in the form of the purchase price as a
result of untrue statements and omissions of material fact concerning the
condition of the Residence, which were made by McNaughton and/or its agent or
agents to mislead Plaintiffs with respect to information pertinent to the Real
Estate.
95. McNaughton and/or its agent or agents engaged in the practice of making
misleading statements concerning the condition of the Residence, which
operated as a fraud or deceit upon Plaintiffs.
96. The Interstate Land Sales Act, 42 U.S.CA 91701 et sea. ("the Interstate Land
Sales Act") entitles Plaintiffs to recision and damages.
97. Plaintiffs' rights under the Interstate Land Sales Act are not waivable or voidable.
98. McNaughton and/or its agent or agents violations of the Interstate Land Sales
Act induced Plaintiffs to purchase and take possession of the Real Estate.
99. McNaughton and/or its agent or agents violations of the Interstate Land Sales
Act resulted in significant damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from
McNaughton's violations of the Interstate Land Sales Act; (2) in the alternative, an order
entering judgment in favor of the Plaintiffs and against McNaughton in the an amount in
excess of the Court's arbitration of limit of $35,000: and (3) together with either of the
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, consequential
and punitive damages, reasonable attorneys' fees, and other appropriate remedies
under federal and/or state law, in an amount to be determined by the Court.
COUNT VII
PLAINTIFFS v. MCNAUGHTON
VIOLATION OF THE REAL ESTATE SELLER DISCLOSURE ACT
100. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
101. The foregoing acts and omissions by McNaughton and its agent or agents
violated the Real Estate Seller Disclosure Act, 68 P.S. S 1201 et seq. (1996),
effective 60 days after July 2, 1996 (repealed and recodified effective December
20, 2001 at 68 Pa.C.S.A S 7301 et seq.).
102. McNaughton provided a limited warranty on the Residence.
103. For the items included in the limited warranty, McNaughton provided coverage
for the lesser of the following: one year or the manufacturer's warranty.
104. As McNaughton did not provide a one-year or greater warranty on the entire
Residence, McNaughton was required to provide Plaintiffs with a disclosure
statement specified by the Real Estate Seller Disclosure Act.
105. The disclosure specified by the Real Estate Seller Disclosure Act required the
seller to state whether it was "aware of any leaks, backups or other problems
relating to any of the plumbing".
106. McNaughton failed to provide Plaintiffs with a disclosure statement meeting the
requirements of the Real Estate Seller Disclosure Act.
107. Section 1032 of the Real Estate Disclosure Act, 68 P .s. 9 1032, provides for a
private cause of action for damages against any person who violates the act.
108. McNaughton's failure to provide the required Disclosure Statement under the
Real Estate Disclosure Act resulted in substantial damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for costs, consequential and punitive damages, and other appropriate
remedies under Pennsylvania law, in an amount to be determined by the Court.
COUNT VIII
PLAINTIFFS v. MCNAUGHTON
VIOLATION OF THE UNFAIR TRADE PRACTICES AND
CONSUMER PROTECTION LAW
109. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
110. The Plaintiffs are consumers within the meaning of the Unfair Trade Practices
and Consumer Law ("UTPCPL") 73 Pa.C.S.A. 9201-1 et seq.
111. McNaughton failed to provide the required Disclosure Statement under the Real
Estate Disclosure Act.
112. The failure to provide a Disclosure Statement was intended to mislead the
Plaintiffs about the completeness of plumbing in the Residence.
113. McNaughton and/or its agent or agents construction of the Residence's plumbing
was of a nature and quality inferior to or below the standard agreed to in writing.
114. McNaughton and/or its agent or agents misrepresentations that: (1) the
plumbing was complete; (2) all home systems were complete; (3) the Residence
was in move-in condition; and (4) the only known defects were contained in the
punch list were false, negligent, and material, and were made to induce the
Plaintiffs to purchase and take possession of the Real Estate.
115. McNaughton and/or its agent or agents misrepresentation were fraudulent and
deceptive, which created a likelihood of confusion and misunderstanding by
Plaintiffs about the condition of the Residence.
116. As a result of McNaughtoh and/or its agent or agents misrepresentation
concerning the condition of the Residence, the Plaintiffs have directly suffered
damages.
117. Had the Disclosure Statement for the Property identified the plumbing problem,
the Plaintiffs would have decided not to purchase and take possession of the
Real Estate.
118. Had the Plaintiffs known the true condition of the Residence, they would have
not purchased and taken possession of the Real Estate
119. Necessary repairs will require very substantial cost.
120. As a result of the foregoing unfair or deceptive acts or practices, the Plaintiffs are
entitled, by virtue of the provisions of the UTPCPL, to recover the following:
(a) actual damages to fully repair the damages resulting from the
Unconnected Pipe;
(b) treble damages; and
(c) Reasonable counsel fees and costs.
WHERFORE, the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 together with an order finding McNaughton liable
to the Plaintiffs for costs, reasonable attorneys' fees, treble damages, and other
appropriate remedies under Pennsylvania law, in an amount to be determined by the
Court.
COUNT IX
PLAINTIFFS v. MCNAUGHTON
BREACH OF IMPLIED WARRANTY OF HABITABILITY
121. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
122. From the time of the Closing until present, the Residence is not fully functional
and habitable because Plaintiffs cannot use the Shower.
123. McNaughton has breached Plaintiffs' implied warranty of habitability.
124. McNaughton's breach of the implied warranty of habitability has resulted in
significant damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for costs, punitive damages, consequential damages and other appropriate
remedies under Pennsylvania law, in an amount to be determined by the Court.
KEEFER, WOOD, ALLEN & RAHAL, LLP.
Dated: 3 - G/ -()7
By:
(MI4J-
Elizabeth J. Goldstein, Esquire
PA I.D. # 73779
Attorneys for Plaintiffs
415 Fallowfield Road, Suite 301
Camp Hill, PA 17011
717-612-5800
EXH'B'T "A"
I AUf:::Nl FOR SELLERg
-rgfFJ-/or,<17 ~ ~p
~PA. LICENSED BROKER
02 8' J7Il-
[SUB AGENT FOR SBLLER].. ...
PA. LICENSED BROKER .
~v(J~.r<
~
1.
-
~.
This Agreement made this
$
2.
3. ZONING: Zoning Classification
Failure of this Agreement to contajn the zoning classification except in cases where the proPerty (or each parcel thereof, if subdividable)
is zoned solely or primarily to permit single-family dwellings shall render this Agreement voidable at the option of the Buyer and jf voided
deposits tendered by the Buyer shall be re urned to the Buy ithout a requ' ement.or cou action.
4. TERMS: (aJ Purchase Price"""er. .
($
I F!j;tX)O.
't.iSLJ.
)
to be paid by the Buysr as follows:
(b) DEPOSIT Check t!':"'Cash O. Note 0 at the signing of (his
agreement, receipt of which is hereby acknowledged. . . .
If Note. to be redeemed 011 or before 1M
(e) ADDITIONAL DEPOSIT due on or before the
day of
(d) BALANCE OF PURCHASE PRICE at settlement
(cash, certified check, and/or mortgage funds) ""
'.1,
~, . .'. ;'" .. ,
$
-
day of
.19~,
19_................_..$
............ L 17~ 7>0. -
TOTAL...:;.:........... $ IF'S; ~fl
(e) W"tton .ppw,,{ of SeU" to"" on", hefo" the Cj'rltt - d'HI ~~.g.P/ "" . 19 b....
(f) Seltltment 10 be made on or bdore the J-. r- day of ~-~- - =.19-P-,
(g) The followu\g shall be apportioned pro-raht as of and at time of sC'uJemenl: Taxes as leVied and aucsserl.. tents, Interesl on mortgale assumpllons, condomlOlum fees
and homeowner asSOCiation fees. If any, water and/or sewer rents if any. together with any other lienable tnlLntClpal servlces,XAIJ ity Transfer Taxes shall be dmdc:d
evenly unle!>s otherwise provided nerem,
S. PROPERTY SETTLEMENT CONTINGENCY: ThiS agrcemenl is subjcct fO the se:ulemCJlI of Buyer's propert, located at IE
on or before
6, FJNANCING CONTINGENC\': This agreement is subject to tbe financing as follows:
(.J PRINCIPAL AMOUNT S ILl':; OC)t:). ---. TYPE r"..o..J~ MINIMUM TERM 3t)'t'~
MAXIMUM INITIAL ,., /.0 ' , ·
INTEREST RATE 1 I~ VJt MAXIMUM TOTAL POINTS. INCLUDING LOAN ORIGINATION FEE, TO BE PAID BY THE BUYER: ~ ~
TERMINAL DATE for Obtaining Financing Comrnicmem ~ I. 1~9 7
Brok.er may. advise ~uyer of possible sources of mortgage funlts. but caRl~ot ass~me ;esponsibililY for obtaining Buyer's mortgage, If said loan canfl,OI be obtained
as herem prOVIded, IbIS Agreement shall be NULL AND VOID and all depoSIt momes shall be returned to tbe &uyer on or before date of settlement as provided herein
subject however tQ the provisions in Paragraphs 6(b) and 6(c), / .
(b) Buyer shall make a ~ompleted application to a resp~>ns~ble le,nd!ng institut,ion fo.r the. said loan witbin . 0 ' calendar days from th.e Seller's approval hereof.
~hould Ihe Bl1y~r faJllo make such completed apphcatlon w.llhm the s~lfied ,ume, II shall be. at the OP~IOIt of tbe Seller, within live (5) calendar days thereafter to:
(I) Declare ttus Agreement NULL AND YOlO, at which nme, all momes paid on account will be forfeiud to Sdler as liquidaled dJamages subjcct to the Rules and
Regulations of the Pennsylvania Real Estate Commission, or '
(iO In absence.of wrillen nOJ!ce to. the Bu>:er by ~he Seller declaring t~is Agrec:ment NULL AND VOID, the COndition and contingency provided for in this Paragraph,
IOg.ether With any other fmancmg co,:umgencles ~hat may be h~rem or endorsed hereto, shaU no long~ prC'Vail. and Ihis Agreemem shall remain effective according
to Its terms in the same manner as If the condition and contingency were no! a part hereof.
(c) ?eller or A~ent musl receive.a wriuen c~mmitme~( valid until the date of sc(tleme~t, fo~ ~he said loan, on or before the terminal date as specified. If the said commitment
IS not rurmshed with the terms as specified b~reJR, or on other .terms accepted JR. wnunjl by the Buycri'on Ot before the specified date, SellC'r shall have the option,
at thai da.le, or any other time thereafter, dUring, the ten~ of thIS Agrctment~ until, b~t.not beyond the da~e of receipt of the commitment by the: SeUer, or Agenl, to
declare th,s- Agreement NULL AND VOJD, by written nollce 10 the Buyer of hIS/her decISion to cancel, at which time aU deposit monies paid on account shall be returned
to the Buyer, subject to the payment required, if any, provided for in Paragraph 12(b): (i), (ii), and (iii), ; , '
~eller hereby agr~ to permil i~spections by auth~rized app~aisers, reputable cen.ifier,s IlDdI~r Buyer as ml)' be required by the lending institution or insuring agenci,es,
Seller hereby agretS 10 pay addltlonaJ mOIlgage discount pomts and/or loan ongmal! ee In case of a bu)'er Obtaining financing from lending institution reqUlClng
anyone or all of aforesaid fees., providing the total of said fees docs not exceed Ifo of the amOU41 of the mortgage,
\
(d)
(e)
7, STATUS OF WATER AND SEWER: Seller warrants that this property is serviced by , ' water and
sewer, Funher, Seller warrants thai tbese systems. are fully paid fo~ ~nd" as of the dale D:f,thlS .Brcc~r:m al"C 1.11 saU'facwry opc'raling con ition, If either aforesaid system
tS private:, Seller warrants thaI he/she has no notice from the mUniCipality or from mUniCipal authorltlts tbat po bile water and/lft 5t?wer wi!I~.!ls$essed pr Installed,
8, MUNICIPAL IMPROVEMENTS: Seller h.as no notices of municipal improvements (such as sidewalks. curbs. etc.) except ~,;r ~Y-
Access to a public road may require iss.ullRce of a Highw OCCUpancy per il from [he Department ~T~Tlacion.
uC->
9, SPt:CIAL CLAUSES:
10. ATTACHED ADDENDA are made a part of this Agreement: 0 Wood Infestation adon Disclosure 0 Priv.ale Waler/On-Sile Sewa~ OFHAJVA
LJ Dual Agency Consent 0 Home Inspection ~er(s): l"l1ii&4J ~ ~AJb<J.Jf"" h d f .
. . . .' dO.' d ,. '.. ., d' d' d '1' fanS} alld sy:uems appunc:nant I ercto an ormln&
11. PERSONALTY: All cltlstmg plumbmg, healing, lUr-con 1II0nlnil an Ightlng llxtures (mc U inS chan ehers an eellng IOlcther with waUlo wall carpeting. screens, slorm
a pall tnaevi, .i!nd olher permanenl filt!ures, as well as all ranges, laundry tubs, T.V, antennas, masts and rotor syuemS, ontices. Walti' &Qftc:ncn, kitchen cabiDcLs.. orapc:l"Y
sash and/or doors, shades, .IIwmn,s, venetian blinds, couplings (or automatic washers and dryers, etc. radiator covc:rs,':.,e door opeoen, sbcch: if U\'. IlWeu spccificaU,.
rods, drapery rod hardware, Cl.lrtlun rods, cl..trtam rod hardware, all.trees, shubbcry, plantinas n~w in .or on prOp{ltY, B o~cd or SubslllUI.o:t by tbe ScUcr {rom Pf"CdIUCI ai~tT
c}lcepled in IhlS Agreement, are included in the sale and purchase pTlce. None of the above me,nuoned lIems shall be rC:JJ1~ uadca: lbis~. Seller ~cby w~
oate of Ihis Agreemeflt. Any remaining heating andJor cooking fuds stored on the premises at lime of senlement lU"e ,J'o I~~ Spt:!CllrIcaU, ~ to ~ tnc:baded III tbit
thal he/sh~ will deliver good titte to ~t of t.he: ani~les described in .this paraBtap.h, IInd ny other fi~tures or ilc:ml ,!f ~tslO bewpropet wtH'kiqordeJ'af tlJDeofseUkmeOt.
sale, Seller warrants all plumbing, heaung, an co Itlonmg, hanlcala d e1eClncal sys ms and equipment and llWllaD
This warranty does not survive closing. C
. .
i"l 111<'plcllmC.> ilH Ii.> he: ~<JllV~y.cU Ul lcesitnplo: by ill"l:lilJ WiIofl<ll1\Y I.ked. j'1~ilIIJ cl.carof i1lllicnli:' cn~l,Imbrll.ntCli .nll"ll$CmCOl~.l::.Kc.:liI'JIM~tO~~Vl::I\. {hc lullowmli\;
U.~lilinB buildinS rcsniclioni, ordma~cci, ,,_menu of roads, pfivileaei Of rightli of public servl~c companies, if any; oreuemcm~ Of reStrlCll ni vIsible lIp1)lI the gr(juDd,
otherwise Ihelille 10 Ihe above des.cnbed real cstale shall be gOod and_markelable or such lis will be}mun:d by a repulable uti" InUIT.nce l;:ompany at the regulilllatcS.
(b) The Buyer ....ill pay for Ihe lollowina: ,. , , - ,. "-"'. ' ".'
(i) The ptcmium for lill" imwancc, me<:hanic:s lien lnsurante and/or title search; or fee for tloccllat<<m of same, If any.,
(0) The premlum for Oood msuran~ lUld/or fire jn~uranee wich eKlcndeD coverage, insurance binder charlles or Clln~llatlon fee, if any.
(Iii) Appraisal fee~ and char,es plIid ill ad..ance to mortllllee, if Iny, i
(i~) HU)'U'l normal settlement costs and accruals unless otherwise stated herein, ' .
(cl Any survey or ~ur~eys which may be required by lh< Tille l,uurlUlcc ComPlon)' or the abstractins a\lorney for thll ,Prepllauon of allatkqullie legal ~nctiption (lllhe
premises ior(htconeaion IheftoO, shaJl bl: secured and plid for by the Seller. Howe~er, any surveyor Ul(Yr)'J desIred by the Buyer or requited by fllS mQrtgagec shall
be stcured ilnd paid for by Ihe Buyer, . ' .
(<.I) In the e~enl the SeUer IS unllolt' LO eive a lOad and mlrkel.ble \itle or such as will be insured by II reputable tide comp.n)', subJtI;t as aforesatd, BuytT sln1\ ha~c lhe
opJion of laklna such tult as the Seller can live withoul abatemCllI ~f price Or of beill( repald all moni~ paid by Ihe Buyer. to Ihe. Scl.ler o!! accounl of the purcl1ue
price and the Seller will reunburse tbe Buyc-r fOf any com Incurred by the Buyt\' for those lteml specified In Pllasraptl 12(b) rcemt (I), Ill), (Iu) and In Paragraph 12(c);
llnd in I~ lalit" eYl:lll Ihere Shllll be no further Ullbilily or objection on either of the plllics here/a and this Al!"eement shall btl;:ome NULL AND VOID.
D. PA YMEJ'o/T Qt. UI::POSIT: DeJ)<.U1u, reJ.,-dlC5~ of the fl)rm of payment ano;! lhe pi:,son deli,flaled &$ payee, shall be paid 10 ^seftl for the Seller, whl) shall rctaiflll~m in
an escrow account unlil ~on",mmation at l.crmll),luion of Ihi$ AJrcemenl in tonf~rmllY Wllh all applicable laws and reSuJacions. Alenl for the Sellcr may, allus or her sole
opllun, lIold any uncashcd check tendcred u depoSit, pcndinalne acceptance of.t~s Qffcf,:. \..;> . ......' ~...;..... \..:, .... '. " .
If there is a <.Ilspule belween the Buyer and lhe ~Iltr o..er who is cmitkd to./)u:. tkposit, Agent will.flOI be rcsponsiplo.to rtlOl~e that.displilc and will nOl b<: liaoll: tocirhcr
Buyer or lhe Seller for refusing co rdaR tilt dCpoJil withoul an adequlue wriuen agreemenl between Buyer and Seller or a va.lid e01l11 order, Buyer and Seller agree Ihal,
In tne, l:Vi'tlr lhc Allent and/or Subaso::nt are/i~ JOIned In btiptiOn for Ihc' retumof depo,il,'DOme5, Jbe Agent's and/or SubaJent'5 rcawnablc auomey's fCCI and coSfl will
bc plUd b~ fhe party Jomlllathe Agent or Subascnl... J' '
14. POSSK'\SfQN AND TENDER: ' - ,"
la) l'us~cS5ion illo be ueli..ered by deed, keys and physical possession 10 II ....cam buildins (if any) at day and lime of sc:ttlement, Dr by deed and assignmer1! of ellis/ing
\ell'ic:i~) II.t the lime of setdemenl if premin5 is ten anI occupied althe silning of tni~ Asrccrnc::nt, unlesl otherwise spcdfic::d herein. Buyer willacknowledl\c eXiSlil\S leiue(s)
by illiliahnJ said lease(l) al lime of ~,ninl of this Agreemenl of Silk: i( tenall' occupied., . '
(h) Sdler Will nQI enler mID anv new lcase(s), wrlllen c:rlension of eldstlng I_(s), If any, or add.hlonallel,$e(sl ror the premisCli wi'~out ex.Pr~ wrilten cun.enl or the "uyer.
(<:) f;o(t<lallellderorane:lccuteddccdandpurchuemon~y,jlherebywaivcd, ." ,___}~. '-^.;:_ J,. ..^ "....~, _ ^_.. .~
(d) Buyer rt:scr~cs the nsht 10 make II prtleulement inspccllo!l of Ille subJcct premist:I, and 'WIll exceute appropriate documentatlon of Iudi' IIItpccllOIl.
t5. RISK OF l.OSS:
(ill Sdkr )bidJ Itlaintain Ihe properly (including all items mentioned in paralP'aph II J hll:rcill) and ally personal property lpecifieally scheduled herein in its prestnl conditiol1.
normal wel.( and lellt ellccptcd. ._ ' I.
(b) Seller shall Qc:u risk of loss from fire or olher casualty unti!lime of seulement. Inlhe event of dama~ 10 lhe property by fire or oltler casuallY, Duyer $hiln ha~c the
opllon of re:;l;lIldlllll this agreement and reCclvinS hana mopcy paid OIl account or_ of acctptins lhe property in It I then oondllion with the pro~s ofllny mwtllllCe
leco~ery obtainable by Seller, .auyer ii hercby nonlled Ihat he.mal' inSI!.Te IllS. ~Utta~le interes!; it).,thu propet:ly as ~r !~e lime of ttle aceeptance of IhlS agreement.
H\. REPRESENT A nONS: II IS undentood thai Buyer tillS inspecled the pn)pc:ny, or hereby waiVCl$ l~ rillll.llo do so and he/she has ..reed 10 purchase il III a resull of ~uch
in\IXCIIOO !IOU no.t because of or in n:lianee upon any rcpt.clC'lIullion made by the Seller or any other officer, partner or employee of Seller, or by lhe <<genl of IDe Selkr (>r
iOny of the laner's lah:speuOlls a.n4 employees" or'try a cooperating Broker, if allY, or any of his/her salefpersGll5 and employees and that he/she has lIgr<:ed 10 purehuc il
1I1 ll~ present com.htion unLei\S otherwi~ spc:cirtc:U herelll .n<.l further acknoW~lellba.t Ihe .forCfflICntiOne4 panies arc not qu:aliried 10 render an opjluon 00 cOn!ltl4'lwn,
en,ineerinK, or en~ironmen{al matterS and lhallllt: buyer has been advised lhat he/she may require or wish to seelclhe assis!lIIIccof e.tpl:ru In Jhost: ftellls, II is further undel'5wod
Ih,llllllS Agreemenl CQnlillnli the whole aarccrnent between Iht: Seller and Buyer and then: IIr.c no Otbff lerms. oblillatlons, co~enantS, reprC$CRtationl, statemen15 or conthuons.
oral or otherwlsc of il,ny kind whatsoever eonccrrllni lItis s.1Ile, Furthermore, lh" Agreement shall nol be altered, amended, changed or modified t.u:rpl ill writing ucculcd
by Ihe parti.cs /lerclo.
l7. RECORUIN(.;: This il,srCl:'mC1lt shall nOl be recordedln the Office for tbe Recordin, of Deeds or in any other office or plillic of public record, and if Buyer shall record lhis
agreemenl ur caul;C or permit tbe same 10 be recorded, Sellcr may, al hivher oplion, cICCI to treat sllCh 1It11lJ; a breach of lhis "lJrecm.cll!.
HI. ASS(~NMENT; 'rlli$ Agrrrmellt shall be binding upon Ibe rcspecti~e heirs, CltC(:uton, administrators, ~tJ=50rs ..rn::I, 10 the Clltenl auisnable, on Ihe assigns of lhe panks
hereto, il bcinS el!.prellly undenlood, hqw~ver, l.halltle Buyer .shall rlotlrllmfer OJ' assiJn Ihis ASrcemenl without ,the written COnSCJIl uf the ScUet being /In;l objain~d.
19. NON.LlABILITY OF ACENT: Excepr as !liar b(o provided by 1I separale a,reerl\ent or aQdendum 10 tnis Agreement, Agc:nt(s) or Su/;l.Agcfll{S" if apy, Dr~ representing Seller,
not fhe BI/yer. ,.'
\I is eKpres_slY underSlood and DsrcCd between tfle pllflies herelo lhal 1m herein n.m~d alcnt, hi~(hcl salespersons and employCl:s or any officer or flatulcr or agtll! and
any coolXrilUng br_okt'f" IInd hu/her .sa.Icspcuons and employees-and ..ny officer or parlner uf lhe: couperaling brok.cr arc .-clins U lIienl DUly in bringinlllhe Iluyer aod Selkr
lClsether, and will In no cue wh.i.tsoc:~cr be htld hable joinllY or sc~crally 10 etl~r pUlY f01lhe performaJICe..of any item or covenltnt of this Agrctmenl 0.1 fur dama~ for
the nonlXrformance Ihercof. . " ' ~ '... :-- .-.. . " ._,-"
10, UE.;f'AULT _ TIMI': IS OF THE ESSENCE: Tnc said lime for seltlemtnt and all ottler ilems referrcd'to fQr'llIe'pcformanec of any of the obliption5 Qf Ihis Agre<::menl
arc hereby agreed to be or the esscnt:c of Ihis Aareement. Should the Buyer; ,
tal Fail 10 make lIIIy adltffianal payments as specified in !>arllgraph 4,
(b) Furnish fabe or incomplcle information (0 the Seller, lbe Sc.lltr's'aJent, or the morl,a,~ lender, concerninlllhe Buyer's lcpJor nnancialltatus, Of fail 10 cooperace
in Ihe p'(lCCssing of the monSaSC loan IIpp1ieatiDn, which ilCU would result in Iht failure 10 obtain the approval of a mOrlaagc JOlin COmmilmenl. ur
1.:/ Viwlllc or fail 10 fulfillllnd perform any of the terms ur conditiolU of this Agrco::menl, then ill such call!, all deposit monies and other ~uml pail! by Ihe Huyer 011 accounl
of lhe puretla.sc: price, whClher required by this Axrcetnrni or nol, rollY be retain~: , '
(i) by lite Scll.cr Oil ..ccou.nl of Ihe purchase price, Should the seller demand Ihe full purchase price, or
(ii) as muniello be applied 10 Ihe Seller's dilmagcs, or
~iii} as liqliidated damasCll for sm:h bleach,
..IS ,IIC Sellcr _milY elecl, and, in tlu: event that the Sellcr elects 10 relain the monics all liquidaled dDm.Bts in a<;(:ordanCl: witbParasraph 2O(c)(iii), the Seller shall be .cleast:u
frQm all hablLlty or oblisallon as lhi~ Asrccmeltl !b.all bt NULL AND VOID.
11. RECOVERY FUND: A real CS'la(e reco..ery fund ellisl5 Iu reimblir~ any persons who has ubtained a final ci..if judsmenl ...ain!l . Pennsyl..ania real estate licensee owinS
lD fraud, mlsrepr~sentation, or dt:ceit In a real eSlale Iransaction and who has been ullllble 10 collrrllhe ;udgcmc:nt after ellhaUltlns allltgal and equitable HmClhe~. For corn-
plel~ delall~ about lhe fund, call (717) 7ij3-4854. . .
21, REAL E~TA n; orSI"VTE RESOLUTION SYSTEM: Any dispule or claim arisins oulof or relll,lin& 10 this Agreement, the b-r.cacb of thil Agreement or lhe service pro~ided
III relation lO Ilus Agrtcmt:nl shall be ~ubmltled LO mcd.iaiton in accordance wulT lhe Rulei and PlocedurCli of the Real Estat.e DispUle ResolutIon System. Disputes shall Include
repfesemallonsmadebytbebuyer.~ller.Ofanyb1okCJ.lISent.su.bagent. or other person or cntily in connection with the: sale, purclta&c, financillJ!' condilions, o. other aspect
of flle pruperty LO which thiS Agreement penains meluding, wllnout limltalion, allegadons of concc:aImelll, mlsrepfCStnlation, nealiltru:c and/or frlud.
The prO~ISIOllS of Ihl' paragraph rdaunt 10 mediaClon sh.aJJ survi..e scltlement on the subJC;a proPtfty or, Cil111C1 termination Qf this Asrccmen(.
Buyer and ~llcr aellnowled,IC lhat Ihey hav.!: recei..ed, read, and Ilndetlland the standud ilnnQun~en( broo:::bure aru::l rulp~d procedurcs for the Real Estatc Dispute Rcsolo-
llunSyslem. ",.. ". ,,' '",'i,," J ".,...i..,,,., -,;11" . ,...."",,; un
23. DESCRlmVE HEADING: The t1esI:riptive hcadinp'lW:d herein are for convenience only and Ihey are not Intendcd,to indicale afl of die matter in tile Jcclions which follow
them. AccordinrlY, lhey shall ha..c no effect whatlOe"'CI' in deu:nnil\ins the riabu orobligationJ o( thll: panict",,~, ,,! ".<11
.14. AGJU:EMEN*r: THIS ACREEMENT CONTAINS THE WHOLE AGREEMENT BETWEEN 1'HE'SELLER AND BUYER. THEllE ARE NO OTHER. TERMS, OBlIGA.
TIONS, COVENANTS, REPRESENTATIONS, STATEMeNTS ORCONDlTfONS, ORAL- OR OTIlERWlSE1'Of ANY ,,{NO WHATSOEVER CONCERNING THIS
SALE, EXCEPT AS ATTACHED TO TtilS CONTRACT. ' "'.', - , " ",_'J ", .,,,.11,,"1 .(JI~' '><' ...',-, "'-" ,
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..U'to.L e.:>tATt: D{SPUTE RE-'\.OLUll0N S\'STEM.:Any dispute 01 eI~ill\..~ e 0 C . . breach Dr this ~gr~menl or t e lerYlC~ pmvillell
In ,l'lallolllO IIu5 Agreement shall be subrnutcd La mediaiion in accordance \\rlt~\in ' ' 'this Agreement, the pjSPUlC R.esolutlon S~Slem. .D,spute, ~halllnclu<le
rcprcsclllallons made ~~ the buyer, seller, or an~ brokel. lIgenl, suba$ml, or ~l~tb: ~Ul,or or ,c1a\lng I~s orthc R~al Estalc purchli$(.. financlIlg, condltlOns, or other asp,,'1
of the properly to wh,,;:h thu Agreement pertains inCluding without Ilmltatloll,\r Pf: 1.IIes and p.roc.edu onnection with the salc"of\, ne&l~cc IlfId/or fraud.
The J>TOVl5mos of th,s pnragraph rel.uolllo llle.cliatiol1 slPali survive ,.,..tlcmcrlt' alJ:s~,i Or eM'l! 1n "a\mem, mlsreprcsc:nUl\~n of Ihh Agrc!anent~
lluye~ and ..,llef acknowledge tnallhey have received, read, an~ undentand Ihe It"'" t~e sons of conarly Of c:arher lamlnall dPlocedlUC$ for the RC:1l1 E~late Oi~p"tc Resolu-
lIon System. ";'..1 .~dllrdil.~b~:..tn~~~tbfOChureandrules~n .., ... ." .
23. OESCRlPTIVE HEADING: Tbe de.so:ipli~" b~din81'uud herein Il!c,fllf convCI{I' .', '" .,.0_,,,..,;1,:' 'cllte all or the mall<:T in lhe: ~ectlons which folio,,",
them. Accordmgly, they shalJ Ilaye PO effect WhatsoeyC'T in dtlc:rmJnlt:lllthcri&l't~nCe Only .lId Ihey lI1e nOllll;tendcd to ,m~II" '
24. AGREEMENT: THIS AGREEMENT CONTAINS TliE WHOLE'AOJ{EEMENl'l Or Obligations of Ihe pll1ues.,;I' "." 'fHERE ARE NO OTHER TJ;:RMS, OD,L.I.GA'
TIONS, COVENANTS., RE.pR.ESE'.NTt\TIONS, SThTEMENTS OR ~ONDIl"IClB;~.T\VE!.EN THE'SELLER AND BUYE~' J<.INO WHATSOEVEiR CONCEll.N1NG 1 illS
SALE, EXCEPT AS ATTACHED TO THIS CONTRACT, ., "' ", , . ":IS, ORAL OR Ol1iERWISE' OF ^:N , .. ,
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This is 8 legaUy biDding contract; if nol understood, consult y;::;
Fax Slaj_~I: Thli, Docunllmt mar be UI:C\Itcd by the BLlyer or Sdler.~d fl&nsmiucd to r attorney.
Document will be bindlnllU though execu.led by the parll~ 01\ ~\K ()l'IIU"~ I1otllnu:~rlt. llle Olher for cxcctllioh by tcielo.
APPROVAL BY BUYER: In willlC$l whereof, the parties hllrelO, intendinato be legally bound
/.__ i\erebr, naye
WITNESS ^S TO BUYER. ~lJYER
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WITNESS AS TO 8UYER BUYER!~;
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VERIFICATION
I, JEFFERY L. SOUDER, state subject to the penalties of the Crimes Code in
18 Pa. C.S.A. ~ 4904 relating to unsworn falsification to authorities that the facts
set forth herein are true and correct to the best of rny knowledge, information and
belief.
1/# L M-
RY L. SOUDER
Date 01~O<;
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VERIFICATION
I, MARY ELLEN ROBINSON, state subject to the penalties of the Crirnes
Code in 18 Pa. C.S.A. S 4904 relating to unsworn falsification to authorities that the
facts set forth herein are true and correct to the best ofrny knowledge, information
and belief.
Date: Of J 9iO!}
I I
17ilrJ/Iri f;~ Ilk. ,vJ4V\
MARY E LEN R6BINSON
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John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
Attorney for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION
v.
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant : JURY TRIAL DEMANDED
PRAECIPE FOR ENTRY OF APP.f:ARANCE
TO THE PROTHONOTARY:
Please enter our appearance on behalf of the Defendant in the above-captioned
case.
Respectfully submitted,
THOMAS, T
AS & HAFER, LLP
Date:
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LD. No. 52661
DERE D. BAHL, ESQUIRE
Attorney I.D. No. 87851
Attorneys for Defendant
CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy of the same in the United States Mail, first class, postage prepaid, to
the following:
Elizabeth J. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfield Road
Suite 301
Camp Hill, P A 1701 I
Date: ~ \ ~ \ () S-
n J. McNally, Esq.
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PRAECIPE FOR LISTING CASE FOR ARGUMENT
(Must be typewritten and submitted in duplicate)
TO THE PROTHONOTARY OF CUMBERLAND COUNTY:
Please list the within matter for the next Argument Court.
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION
v.
No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY :
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
1. State matter to be argued (i.e., plaintiff's motion for new trial, defendant's demurrer to
complaint, etc.):
Defendant's Preliminary Objections to Plaintiff's Complaint.
2. Identify counsel who will argue cases:
(a) for plaintiff:
Elizabeth J. Goldstein, Esquire, 415 Fallowfield Road, Suite 301, Camp Hill,
PA 17011
(b) for defendant:
John J. McNally, III, Esquire, Thomas Thomas and Hafer, 305 North Front
Street, Harrisburg, P A 1710 1
3. I will notify all parties in writing within two days that this case has been listed for argument.
4. Argument Court Date:
'7)ore..('i.be.h t/3, ~DDS'
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Attorney for Defendant
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JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION
v.
No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
ORDER
AND NOW, this _ day of
, 2005, upon consideration of the
Preliminary Objections of Defendant, and Plaintiffs' response thereto, it is hereby ORDERED
and DECREED that Defendant's Preliminary Objections are granted; it is further ORDERED as
follows:
1. Counts II, III, IV, V and VII are stricken pursuant to the "gist of the action
doctrine";
2. Plaintiffs are required to re-plead the breach of contract claim set forth in Count I
of their Complaint, attaching to their Amended Complaint all construction documents
incorporated into the Sales Agreement upon which they base their breach of contract claim in
accordance with Pa.R.C.P. 1019(h);
3. Plaintiffs' prayer for attorney's fees is stricken from the WHEREFORE clauses
following Counts II, III, IV and V (to the extent that those Counts remain) and Count VI for legal
insufficiency;
4. Plaintiffs' prayer for prayer for punitIve damages is stricken from the
WHEREFORE clauses following Counts II, III, IV, V and VII (to the extent that those Counts
remain), as well as Counts VI and IX for legal insufficiency;
5. To the extent that it has not been stricken pursuant to the "gist of the action
doctrine", Count II is stricken for legal insufficiency and/or pursuant to the
"REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the
Sales Agreement attached to Plaintiffs' Complaint;
6. To the extent that it has not been stricken pursuant to the "gist of the action
doctrine", Count III is stricken pursuant to the "REPRESENTATIONS" and "AGREEMENT"
clauses contained in Paragraphs 16 and 24 of the Sales Agreement attached to Plaintiffs'
Complaint;
7. To the extent that it has not been stricken pursuant to the "gist of the action
doctrine", Count IV is stricken pursuant to the "REPRESENTATIONS" and "AGREEMENT"
clauses contained in Paragraphs 16 and 24 of the Sales Agreement attached to Plaintiffs'
Complaint, or, alternatively, the prayer for money damages set forth in the WHEREFORE
following Count N is stricken for legal insufficiency;
8. Count VII is stricken on the grounds that Defendant is exempt from the
requirements ofthe Real Estate Seller Disclosure Law, or, alte:rnatively, for legal insufficiency;
9. Count IX is stricken for legal insufficiency and/or pursuant to the
"REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the
Sales Agreement attached to Plaintiffs' Complaint; and
10. This action is hereby stayed and all claims surviving these Preliminary Objections
are directed to mediation pursuant to the REAL ESTATE DISPUTE RESOLUTION SYSTEM
clause contained in Paragraph 22 of the Sales Agreement attached to Plaintiffs' Complaint.
BY THE COURT:
J.
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, PA 17108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION
v.
No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
DEFENDANT'S PRELIMINARY OBJECTIONS
TO PLAINTIFFS' COMPLAINT
Defendant The McNaughton Company, d/b/a McNaughton Homes, Inc. (hereinafter
"McNaughton"), by and through its undersigned counsel, hereby preliminarily objects to
Plaintiffs' Complaint, stating as follows:
1. This lawsuit centers upon a single alleged construction defect that Plaintiff
homeowners Jeffrey L. Souder and Ellen Robinson claim remained unknown to them from the
time that they took possession of their newly constructed home until May 23, 2004, nearly seven
years later. (A copy of Plaintiffs' Complaint is attached hereto as Exhibit "A".)
2. More specifically, Plaintiffs contend that McNaughton, by and through its
employee(s) or agents(s), failed to extend a pipe running from the drain of their master bedroom
shower all the way outside of their home, instead extending the pipe only to a basement crawl
space and insulating over it along with the rest of the crawl space walls. (See Exhibit "A" at "
14,15,18,19,86 and 89.)
3. Plaintiffs further allege that the failure to completely extend the drain pipe
allowed water to drain into the crawl space, which water drainage "compromised the residence's
back yard patio and caused it to sag" and caused mold to form, which mold spread to the
"basement, heat ducts, floor joists and carpet" and was breathed by Plaintiffs, causing "health
problems". (See Exhibit "A" at ~~ 16, 18 and 42-45.)
4. The sole Defendant is The McNaughton Company, d/b/a McNaughton Homes,
Inc., which entity contracted with Plaintiffs for the sale of their lot and the construction of a
home. (See Exhibit "A" at ~ 8.)
5. Plaintiffs name as a defendant neither any subcontractors nor any employees or
other agents of McNaughton.
6. The only document which Plaintiffs attach to their Complaint is a purportedly
complete copy of the Sales Agreement entered into with McNaughton. (See Sales Agreement
attached to Exhibit "A" as Exhibit 'A".)!
7. Despite alleging the existence of same, Plaintiffs do not attach to their Complaint
the Warranty provided by McNaughton, or the New Home Addendum, plans or specifications
referenced in the Sales Agreement. (See Exhibit "A", both generally and at ~~ 102-104.)
8. Paragraph 16 of the Sales Agreement signed by both Plaintiffs states in pertinent
part as follows:
REPRESENTATIONS: It is understood that Buyer has inspected the property, or
hereby waives the right to do so and he/she has agreed to purchase it as a result of
such inspection and not because of or in reliance upon any representation made by
the Seller or any other officer, partner or employee of Seller, or by the agent of
Seller or any of the latter's salespersons and employees.. ..and that he/she has
agreed to purchase it in its present condition unless otherwise specified herein. It
is further understood that this Agreement contains thtl whole agreement between
I The copy of the Sales Agreement attached to Plaintiffs Complaint as Exhibit "A" is, in certain places, cut off
and/or difficnlt to read.
the Seller and Buyer and there are no other items, obligations, covenants,
representations, statements or conditions oral or otherwise of any kind whatsoever
concerning this sale. Furthermore, this Agreement shall not be altered, amended,
changed or modified except in writing executed by the parties hereto.
(See Exhibit "A" to Exhibit "A" at '\[16.)
9. Paragraph 22 of the Sales Agreement signed by both Plaintiffs states as follows:
REAL ESTATE DISPUTE RESOLUTION SYSTEM: Any dispute or claim
arising out of or relating to this Agreement, the breadth of this Agreement or the
service provided in relation to this Agreement shall be submitted to mediation in
accordance with the Rules and Procedures of the Rea.l Estate Dispute Resolution
System. Disputes shall include representations made by the buyer, seller, or any
broker, agent, subagent, or other person or entity in connection with the sale,
purchase, financing, conditions, or other aspect of the property to which this
Agreement pertains including, without limitation, allegations of concealment,
misrepresentation, negligence and/or fraud. The provisions of this paragraph
relating to mediation shall survive settlement on the subject property or earliest
termination of this Agreement. Buyer and Seller acknowledge that they have
received, read and understood the standard announcement brochure and rules and
procedures for the Real Estate Dispute Resolution System.
(See Exhibit "A" to Exhibit "A" at '\[22.)
10. Finally, Paragraph 24 of the Sales Agreement signed by both Plaintiffs states as
follows:
AGREEMENT: THIS AGREEMENT CONTAINS THE WHOLE
AGREEMENT BETWEEN THE SELLER AND BUYER. THERE ARE NO
OTHER TERMS, OBLIGATIONS, COVENANTS, REPRESENTATIONS,
STATEMENTS OR CONDITIONS, ORAL OR OTHERWISE, OF ANY KIND
WHATSOEVER CONCERNING THE SALE, EXCEPT AS ATTACHED TO
THIS CONTRACT.
(See Exhibit "A" to Exhibit "A" at '\[24.)
11. Furthermore, Plaintiffs otherwise pack their Complaint full of spurious factual
allegations, insufficiently plead and duplicative causes of action, and requests for unrecoverable
damages.
12. This matter, at best, is in fact a simple breach of contract action in which, should
they prevail, Plaintiffs would be entitled to the remedies spelled out in the Sales Agreement and
other construction documents incorporated into it.
13. As such, for the purpose of paring this lawsuit down to its proper scope, Plaintiffs
preliminarily object to Plaintiffs' Complaint pursuant to Pennsylvania Rules of Civil Procedure
I028(a)(l)(2), (3) and (4).
14. Pennsylvania Rule of Civil Procedure 1028(a)(l) permits a party to preliminarily
object to a pleading due to "lack of jurisdiction over the subje'~t matter of the action or the person
..." Pa.R.C.P. 1028(a)(1).
15. Pennsylvania Rule of Civil Procedure 1028(a)(2) permits a party to preliminarily
object to a pleading due to "failure of a pleading to conform to law or rule of Court..." Pa.R.C.P.
1028(a)(2).
16. Pennsylvania Rule of Civil Procedure 1028(a)(3) permits a party to preliminarily
object to a pleading due to "insufficient specificity in a pleading". Pa.R.C.P. 1028(a)(3).
17. Pennsylvania Rule of Civil Procedure 1 028( ay( 4) permits a party to preliminarily
object to a pleading due to "legal insufficiency". Pa.R.C.P. 1028(a)(4).
I. Plaintiffs' Tort Claims Set Forth In Counts II. III. IV. V And VIII Are Barred Bv
The Gist Of The Action Doctrine.
18. Paragraphs 1-17 above are hereby incorporated by reference.
19. In Counts II, III, IV, V and VIII, Plaintiffs seek to recover for fraudulent
misrepresentation, negligent misrepresentation, innocent misrepresentation, negligence and
unfair trade practices. (See Exhibit "A" at Counts II, III, IV, V and VIII.)
20. Each and every one of these purported tort claims is, however, directly tied to
McNaughton's alleged failure to extend the drain pipe.
21. Any and all alleged duties owed by McNaughton relative to these purported tort
claims flow directly from its Sales Agreement with Plaintiffs.
22. Pennsylvania's "gist of the action" doctrine bars a plaintiff from bringing a tort
claim that merely replicates a claim for breach of an underlying contract. Blue Mountain
Mushroom Co. v. Monterev Mushroom, 2002 U.S.Dist. LEXIS 17329 (E.D. Pa. 2002).
23. The "gist of the action" doctrine is designed to maintain the conceptual distinction
between breach of contract and tort claims. Etoll v. Elias/Savion Advertising, 811 A.2d 10
(Pa.Super. 2002).
24. As a practical matter, the "gist of the action" doctrine precludes a plaintiff from
re-casting ordinary breach of contract claims into tort claims. Y occa v. Pittsburgh. Steelers
Sports, 806 A.2d 936 (Pa.Cmwlth. 2002).
25. The test employed under the "gist of the action" doctrine "is not limited to
discreet instances of conduct; rather, the test is, by its own terms, concerned with the nature of
the action as a whole." American Guar. & Liab. Ins. Co. v. Foianini, 90 F.Supp.2d 615 (E.D. Pa.
2000).
26. While Counts II, III, N, V and VIII may be cloaked in negligence language, each
of these claims emanates from McNaughton's alleged failure to comply with the duties flowing
from the Sales Agreement entered into with Plaintiffs.
27. The "gist" ofthis lawsuit is Plaintiffs' breach of contract claim.
28. Plaintiffs' tort claims, set forth in Counts II, III, IV, V and VIII of their
Complaint, are merely derivative of the underlying breach of contract claim and are therefore
barred by the "gist of the action doctrine".
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court dismiss, for kgal insufficiency pursuant to Rule
1028(a)(4), Counts II, III, IV, V and VIII Plaintiffs' Complaint.
II. Plaintiffs Shonld Be Required To Re-Plead Their Breach Of Contract Claim. Set
Forth In Count I of Their Comolaint. Attachinl! to Their Amended Comolaint All
Construction Documents Incoroorated Into The Sales Al!reement With
McNaul!hton.
29. Paragraphs 1-28 above are hereby incorporated by reference.
30. Plaintiffs base their case against McNaughton upon the Sales Agreement entered
into with McNaughton, yet Plaintiffs attach to their Complaint only some of the documents
incorporated into that agreement. (See Exhibit "A" to Exhibit "A".)
31. Pennsylvania Rule of Civil Procedure 1019(h) requires that a party basing a claim
upon a written agreement attach to the complaint a copy of that agreement. Pa.R.C.P. 1019(h).
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court order Plaintiffs to attach to their Amended
Complaint copies of all documents incorporated into the Sales Agreement upon which Plaintiffs
base their breach of contract claim.
III. Plaintiffs' Prayer For Attornev's Fees. Set Forth In The Addendum Clauses
Followinl! Counts II. III. IV. V and VI Of Their Comolaint. Should Be Stricken For
Lel!a1 Insufficiencv.
32. Paragraphs 1-31 above are hereby incorporated by reference.
33. Plaintiffs request attorney's fees in the WHEREFORE clauses following Counts
II, III, IV, V, VI and VIII of their Complaint. (See Exhibit "A" at Counts II, III, IV, V, VI and
VIII. )
34. Generally, each party to litigation is responsible for his or her own legal fees,
absent a statutory provision that provides to the contrary. Johnson v. Beane, 616 A.2d 648
(Pa.Super. 1992).
35. Pennsylvania Courts have consistently applied the American Rule that there can
be no recovery of attorney's fees from an adverse party absent 1) an express statutory
authorization, 2) a clear agreement among the parties, or 3} some established exception. See
~ Dardovitch v. Haltzman, 190 F.3d 125 (3rd Cir. 1999); Merlino v. Delaware Countv. 728
A.2d 949 (Pa. 1999) and Koffman v. Smith, 682 A.2d 1282 (Pa.Super. 1996).
36. In the instant matter, Plaintiffs have failed to Sl~t forth, in Counts II, III, IV, V and
VI, any statute, agreement between the parties, or other factual basis warranting the award of
attorney's fees.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Plaintiffs' prayer for attorney's fees from
the WHEREFORE clauses of Counts II, III, IV, V and VI of their Complaint.
IV. Plaintiffs' Praver For Punitive Damal!:es. Set Forth In The WHEREFORE Clauses
Followinl!: Counts II. III. IV. V. VI. VII and IX Of Their Complaint Should Be
Stricken For Lel!:al Insufficiencv.
37. Paragraphs 1-36 above are hereby incorporated by reference.
38. Plaintiffs request punitive damages in the WHEREFORE clauses following
Counts II, III, IV, V, VI, VII and IX of their Complaint. (See Exhibit "A" at Counts II, III, IV,
V, VI, VII and IX.)
39. The purpose of punitive damages is to punish outrageous and egregious conduct
done in a reckless disregard of another's rights. Hall v. Jackson, 2001 PA Super 334.
40. As such, a court may award punitive damages only if an actor's conduct was
malicious, wanton, willful, oppressive, or exhibited an evil motive or reckless indifference to the
rights of others. Id.
41. Indeed, punitive damages are not appropriately awarded for misconduct that
constitutes ordinary negligence such as inadvertence, mistake and errors of judgment, or even for
gross negligence. SHV Coal v. Continental Grain Co., 587 A.2d 702 (Pa. 1991).
42. Wanton conduct means that the tortfeasor realized the danger to the plaintiff and
disregarded the danger to such a degree that there was "at least willingness to inflict injury, a
conscious indifference to the perpetration of the wrong." Dean v. Community Med. Ctr., 46 Pa.
D.& C.4th 334 (C.P. Lackawana 2000) (citing Lewis v. Miller, 543 A.2d 590 (pa.Super. 1988)
and Stubbs v. Frazer, 454 A.2d 119 (pa.Super. 1982)).
43. Reckless indifference means that "the actor has intentionally done an act of an
unreasonable character, in disregard to a risk known to him or so obvious that he must be taken
to have been aware of it, and so great as to make it highly probable that harm would follow."
Dean, 46 Pa.D.& C.4th at 335 (citing McClellan v. HMO of PA, 604 A.2d 1053 (Pa.Super.
1992), mm, den., 616 A.2d 985 (Pa. 1992)).
44. The defendant's state of mind is vital in determining whether punitive damages
are appropriate; there must be an application of the risk, and the failure to act must be
intentional, reckless or malicious. Downhouer v. Judson, 45 Pa.D.&C.4th 172 (C.P. Dauphin
2000).
45. As such, punitive damages are only available in extremely limited circumstances
in Pennsylvania. Id.
46. Plaintiffs' allegations do not amount to actionable fraud.
47. Even if true, McNaughton's alleged failure to extend the drain pipe entirely
outside of the home during construction and/or to identify and rectify its alleged error amounts to
no more than mere negligence.
48. It stretches the bounds of credibility to suggest, as Plaintiffs appear to in their
Complaint, that McNaughton was aware that the drain pipe had been extended only to a
basement crawl space and then insulated over, let alone that McNaughton concealed (before
plaintiffs moved into their home) what (if true) would be an easily rectified error. (See Exhibit
"A" at ~~ 7-49.)
49. Furthermore, Plaintiffs set forth absolutely no facts in their Complaint which in
any way substantiate their baldly asserted prayer for the imposition of punitive damages.
50. Accordingly, in the absence of any shred of actual factual support, Plaintiffs
prayer for punitive damages should be stricken from the WHEREFORE clauses following
Counts II, III, IV, V, VI, VII and IX of their Complaint.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Plaintiffs' prayer for punitive damages
from the WHEREFORE clauses following Counts II, III, IV, V, VI, VII and IX of their
Complaint.
V. Plaintiffs' Claim For Fraudulent Misrepresentation, Set Forth In Count II Of Their
Complaint:. Should Be Stricken For Leeal Insufficiencv.
51. Paragraphs 1-50 above are hereby incorporated by reference.
52. In Count II of their Complaint, Plaintiffs attempt to set forth a claim for
fraudulent misrepresentation. (See Exhibit "A" at Count II.)
53. To make out a viable claim for fraudulent misrepresentation, a plaintiff must
allege facts demonstrating 1) a representation; 2) material to the transaction at hand; 3) made
falsely, with knowledge of its falsity or recklessness as to whether it is true or false; 4) with the
intent of misleading another into relying on it; 5) justifiable reliance on the misrepresentation;
and 6) a resulting injury proximately caused by the reliance. Bortz v. Noon, 729 A.2d 555 (Pa.
1999)
54. As set forth above, Plaintiffs' allegations do not amount to actionable fraud.
55. As set forth above, even if true, McNaughton's alleged failure to extend the drain
pipe entirely outside of the home during construction and/or to identify and rectify its alleged
error amounts to no more than mere negligence.
56. As set forth above, it stretches the bounds of credibility to suggest, as Plaintiffs
appear to in their Complaint, that McNaughton was aware that the drain pipe had been extended
only to a basement crawl space and then insulated over, let alone that McNaughton concealed
(before plaintiffs moved into their home) what (if true) would be an easily rectified error. (See
Exhibit "A" at ~~ 7-49.)
57. Furthermore, as set forth above, Plaintiffs sets forth absolutely no faCts in their
Complaint which in any way substantiate their baldly asserted claim for fraudulent
misrepresentation.
58. In addition, Plaintiffs' purported fraudulent misrepresentation claim is barred by
the "REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of
the Sales Agreement. See Bowman v. Meadow Ridge, 1992 Pa.Super. LEXIS 2548, 5-6.
59. Accordingly, in the absence of any shred of factual support and based on the
"REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the
Sales Agreement, Plaintiffs claim for fraudulent misrepresentation, set forth in Count II of their
Complaint, should be stricken for legal insufficiency in the event that it has not already been
stricken pursuant to the gist of the action doctrine.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Count II of Plaintiff's Complaint.
VI. Plaintiffs' Nelllillent Misrepresentation Claim Contained In Count III Of Their
Complaint. Should Be Stricken For Leeal Insufficiencv.
60. Paragraphs 1-59 above are hereby incorporated by reference.
61. In Count III of their Complaint, Plaintiffs set forth a claim for negligent
misrepresentation. (See Exhibit "A" at Count III.)
62. To make out a viable claim for negligent misrepresentation, a plaintiff must allege
facts demonstrating: 1) a misrepresentation of a material fac:!; 2) made under circumstances in
which the misrepresenter ought to have known its falsity; 3) with an intent to induce another to
act on it; and 4) a resulting injury to a party acting III justifiable reliance on the
misrepresentation. Bortz v. Noon, 729 A.2d 555 (Pa. 1999).
63. Plaintiffs' purported innocent misrepresentation claim is barred by the
"REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the
Sales Agreement. See Bowman v. Meadow Ridge, 1992 Pa.Super. LEXIS 2548, 5-6.
64. Accordingly, to the extent that it has not already been stricken pursuant to the gist
of the action doctrine, Plaintiffs claim for negligent misrepresentation, set forth in Count III of
their Complaint, should be stricken for legal insufficiency based on the "REPRESENTATIONS"
and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the Sales Agreement,
WHEREFORE, Defendant The McNaughton ComparlY d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Count III of Plaintiffs Complaint.
VII. Plaintiffs' Innocent Misrepresentation Claim Contained In Count IV Of Their
Complaint. Or. At A Minimum. Plaintiffs' Prayer for Monev Dama2es Set Forth In
The WHEREFORE Clause FoIlowin2 Count IV. Should Be Stricken For Leeal
Insufficiencv.
65. Paragraphs 1-64 above are hereby incorporated by reference.
66. In Count N of their Complaint, Plaintiffs set forth a claim for innocent
misrepresentation. (See Exhibit "A" at Count N.)
67. As part of that claim, Plaintiffs request the imposition of money damages.
68. Plaintiffs' purported innocent misrepresentation claim is barred by the
"REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the
Sales Agreement. See Bowman v. Meadow Rid~e, 1992 Pa.Super. LEXIS 2548, 5-6.
69. Accordingly, based on the "REPRESENTATIONS" and "AGREEMENT"
clauses contained in Paragraphs 16 and 24 of the Sales Agreement, Plaintiffs claim for innocent
misrepresentation, set forth in Count IV of their Complaint, should be stricken for legal
insufficiency in the event that it has not already been stricken pursuant to the gist of the action
doctrine.
70. Furthermore, although a claim for innocent misrepresentation has been recognized
by Pennsylvania courts to rescind a real estate transaction based upon a material
misrepresentation, the Supreme Court of Pennsylvania has expressly declined to recognize legal
tort liability for an alleged innocent misrepresentation. See 130rtz v. Noon, 729 A.2d 555 (Pa.
1999).
71. Accordingly, to the extent that Plaintiffs' innoeent misrepresentation claim is not
stricken pursuant to the gist of the action doctrine or the "REPRESENTATIONS" and
"AGREEMENT" clauses contained in Paragraphs 16 and 24 of the Sales Agreement, then
Plaintiffs' prayer for money damages should be stricken for legal insufficiency.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Count IV of Plaintiffs' Complaint, or, at a
minimum, strike the prayer for money damages set forth in the WHEREFORE clause following
Count IV.
VIII. Plaintiffs' Real Estate Seller Disclosure Law Claim. Set Forth in Count VII Of
Their Complaint, Should Be Stricken For Leeal Insufficiencv.
72. Paragraphs 1-71 above are hereby incorporated by reference.
73. In Count VII of their Complaint, Plaintiffs attempt to set forth a claim for alleged
violation of the Real Estate Seller Disclosure Law, now set forth at 68 Pa.C.S. ~ 730 I et seq.
(See Exhibit "A" at Count VII.)
74. Section 7302 of the Real Estate Seller Disclosure Law, 68 Pa.C.S. S 7302(a)(2),
specifically exempts "new residential construction that has not been previously occupied" if:
(i) the buyer has received a one-year or longer written warranty covering such
construction;
(ii) the dwelling has been inspected for compliance with the applicable building
code or, if there is no applicable code, for compliance with a nationally recognized model
building code; and
(iii) a certificate of occupancy or a certificate of code compliance has been issued
for the dwelling.
75. Plaintiffs admit in their Complaint that McNaughton provided a warranty (which
warranty is not attached to the Complaint) of at least one year on the home itself (despite
Plaintiffs' representations to the contrary, manufacturers' warranties dealing with home
appliances and the like are immaterial to the applicability of the Law). (See Exhibit "A" at ~~
102-104.)
76. Furthermore, Plaintiffs allege in their Complaint that McNaughton had the home
inspected and represented to them that it was in "move-in condition, with all major systems
complete.. . and was ready to be inhabited". (See Exhibit "A" at ~~ 24, 25, 28 and 31.)
77. In addition, the Sales Agreement attached to the Complaint specifically states at
Paragraph 16 that "it is understood that Buyer has inspected the property, or hereby waives the
right to do so and has agreed to purchase it as a result of such inspection and not because of or in
reliance upon any representation made by the Seller..." (See Exhibit "A" to Exhibit "A" at ~
16.)
78. As such, McNaughton is exempt from the requ:irements of the Real Estate Seller
Disclosure Law and Plaintiffs have therefore failed to set forth a viable claim for violation of
same.
79. Furthermore, to the extent that this Court determines that McNaughton is not
exempt from the requirements of the Law, then the reasoning set forth in McNaughton's Fourth
and Fifth Preliminary Objections as to the absence in the Complaint of allegations setting forth
actionable fraud and the "REPRESENTATIONS" and "AGREEMENT" clauses applies equally
with respect to Plaintiffs' Real Estate Seller Disclosure Law claim such that it should, in any
event, be stricken for legal insufficiency.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Plaintiffs' Real Estate Seller Disclosure
Law claim set forth in Count VII of their Complaint.
IX. Plaintiffs Unfair Trade Practices Claim. Set Forth in Count VIII of their Comolaint.
Should Be Stricken For Le2al Insufficiencv.
80. Paragraphs 1-79 above are hereby incorporated by reference.
81. In Count VIII of their Complaint, plaintiffs attempt to set forth a claim for fraud-
based violations of the Unfair Trade Practices and Consumer Protection Law ("UTPCPL"), 73
Pa.C.S. S 201-1 et seq., entitling them to treble damages. (Set: Exhibit "A" at Count VIII.)
82. To make out a viable claim for fraud-based violations of the UTPCPL, a plaintiff
must allege facts demonstrating the elements of a common I\lw fraud claim. Sewak v.
Lockhardt, 699 A.2d 755, 761 (Pa.Super. 1997).
83. Therefore, the reasoning set forth above in '\1cNaughton's Fourth and Fifth
Preliminary Objections applies equally with respect to Plaintiffs purported unfair trade practices
claim.
84. As such, Plaintiffs unfair trade practices claim, set forth in Count VIII of their
Complaint, should be stricken for legal insufficiency, or, alternatively, pursuant to the
"REPRESENTATIONS" and "AGREEMENT" clauses contained in Paragraphs 16 and 24 of the
Sales Agreement attached to Plaintiffs' Complaint.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court strike Counts VIII of Plaintiff's Complaint.
X. This Court Should Enter An Order Stavinl! These Proceedinl!s And Directinl! The
Matter To Mediation Based On The Real Estate DisDute Resolution Clause
Contained In The Sales Al!reement.
85. Paragraphs 1-84 above are hereby incorporated by reference.
86. Paragraph 22 of the Sales Agreement signed by both Plaintiffs contains an
express REAL ESTATE DISPUTE RESOLUTION SYSTEM clause requiring that "any dispute
or claim arising out of or relating to this Agreement, the breach of this Agreement or the service
provided in relation to this Agreement", "including, without limitation, allegations of
concealment, rnisrepresentation, negligence and/or fraud", be submitted to mediation. (See
Exhibit "A" to Exhibit "A" at ~ 22.)
87. All of Plaintiffs' claims in this matter clearly fall within the ambit of the all-
encompassing arbitration clause set forth in Paragraph 22.
88. As such, this Court lacks jurisdiction over this lawsuit, and this Court should
issue an order directing to mediation all claims that survive these preliminary objections.
Warwick Twp. Water and Sewer Auth. v. Bucher & James, 2004 PA Super 76.
WHEREFORE, Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
respectfully requests that this Honorable Court enter an ordl:r staying these proceedings and
directing to mediation all claims that survive these preliminary objections.
Respectfully submitted,
THOMAS, THOMAS & HAFER, LLP
Date:~G, (0;:-
By:
,~ (3JJ-
JO J. McNALLY, III, ESQUIRE
DEREK D. BAHL, ESQUIRE
Attorneys for Defendant
377530.1
EXHIBIT "A"
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ThUl Asroomonl mad. tbis
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[re.Sldins at DfP
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or d w11,LbaUdlrl an improve at!! I~n or. . ibll1lf' know : ~Z16: ""~ ~:ri!Xj~
. .
3. ZONlNG: ZollillJ, C1usil\...lion
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~, TERMS: (8) PUJ'ehase 'Pric. t!:Y'I~ ~ ~ .~~_--...<J.UJ.
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to b. paid by tile lIu)'JI' as follows: .. -' ..... .... . ......
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CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy of the same in the United States Mail, first class, postage prepaid, to
the following:
Elizabeth J. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfield Road
Suite 301
Carnp HilI, P A 170 II
Date: q \ \P l 0)
SHERIFF'S RETURN - OUT OF COUNTY
CASE NO: 2005-04091 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
SOUDER JEFFERY L
VS
MCNAUGHTON COMPANY THE DBA MCN
R. Thomas Kline , Sheriff or Deputy Sheriff who being
duly sworn according to law, says, that he made a diligent search and
and inquiry for the within named DEFENDANT
, to wit:
MCNAUGHTON COMPANY THE D/B/A
MCNAUGHTON HOMES INC
but was unable to locate Them
in his bailiwick. He therefore
deputized the sheriff of DAUPHIN
County, Pennsylvania, to
serve the within COMPLAINT & NOTICE
On August
23rd , 2005 , this office was in receipt of the
attached return from DAUPHIN
Sheriff's Costs:
Docketing
Out of County
Surcharge
Dep Dauphin County
Postage
18.00
9.00
10.00
30.00
.37
67.37
08/23/2005
KEEFER WOOD
So answe~ . .....::;.:---:._,_--.~
~.~'/ --- ~--"/"",,,
~--;;:::;;:;-;:p/,:=:~-
R. Thomas Kline
Sheriff of Cumberl nd County
ALLEN RAHAL
Sworn and subscribed to before me
this //
1 ff 6 ~-
day of <;:'ef J...",,* A1~
?:tfif,
In The Court of Common Pleas of Cumberland County, Pennsylvania
Jeffrey L. Souder and Mary Ellen Robinson
vs.
The McNaughton Company d/b/a McNaughton Homes, Inc.
4400 Deer Path Rd., Suite 201
Harrisburg, P A 17110
No. 2005-4091 Civil Term
Now, August 15, 2005, I, SHERIFF OF CUMBERLAND COUNTY, P A, do hereby deputize the Sheriff of
Dauphin County to execute this Writ, this deputation being made at the request and risk of the Plaintiff.
r~A~~~~
Sheriff of Cumberland County, PA
Affidavit of Service
Now,
,20_, at
o'clock_M, served the
within
upon
at
by handing to
a
copy of t.~e original
and made known to
the contents thereof.
So answers,
Sheriff of
County, PA
Sworn and subscribed before
me this day of ,20_
COSTS
SERVICE
MILEAGE
AFFIDAVIT
$
$
@ffice of tlT1~ ~1reriff
William T. Tully
Solicitor
Charles E. Sheaffer
Chief Deputy
Mary Jane Snyder
Real Estate Deputy
Michael W. Rinehart
Assistant Chief Deputy
Dauphin County
Harrisburg, Pennsylvania 17101
ph: (717) 780-6590 fax: (717) 255-2889
Jack Lotwick
Sheriff
Commonwealth of Pennsylvania
SOUDER JEFFREY L & ROBINSON MARY ELLEN
vs
County of Dauphin
THE MCNAUGHTON COMPANY
Sheriff's Return
No. l455-T - -2005
OTHER COUNTY NO. 4091 CIVIL 2005
AND NOW:August 17, 2005
at 8: lOAM served the within
NOTICE & COMPLAINT
upon
THE MCNAUGHTON COMPANY
D/B/A MCNAUGHTON HOMES INC
to CLAIRE LYTER - OFFICE MANAGER
by personally handing
1 true attested copy(ies)
of the original
NOTICE & COMPLAINT
and making known
to him/her the contents thereof at 4400 DEER PATH RD
SUITE 201
HARRISBURG, PA 17110-0000
Sworn and subscribed to
So Answers,
Jfr#L
before me this 17TH day of AUGUST, 2005
Sheriff of Dauphin County, Pa.
~A/
~IJ~
By
NOTARIAL SEAL
MARY JANE SNYDER, Notary Public
Highspire, Dauphin County
My Commission Expires Sept. 1,2006
Deputy Sheriff
Sheriff's Costs: $30.00 PAID BY COUNTY
WONG
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, PAl 7108-0999
Attorney for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION
v.
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
PRAECIPE FOR ENTRY OF APPEARANCE
TO THE PROTHONOTARY:
Please enter our appearance on behalf of the Defendant in the above-captioned
case.
Respectfully submitted,
THOMAS, THOMAS & HAFER, LLP
Date: 16\~~O(
, ESQUIRE
Attorn I.D. No. 52 61
DEREK D. BAHL, ESQUIRE
Attorney I.D. No. 87851
Attorneys for Defendant
CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy of the same in the United States Mail, first class, postage prepaid, to
the following:
Date: 10/ (oj 05
Elizabeth J. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfield Road
Suite 301
Camp Hill, PA 17011
Kirnberly 1. H n
Legal Secretary to
C) ...,
c:~ <= (')
<::::.:1 -71
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cr:
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:;:.,;
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Cl .<
In the Court of Common Pleas
Cumberland County, Pennsylvania
Jeffery L. Souder
and
Mary Ellen Robinson
~
~\?jJ
~.
c;
Plaintiffs
Civil Action-Equity and Law
Y.
Civil Division
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
No. DS - ~091
NOTICE
Ct~d '702-"'1
YOU HA VB BEEN SUED IN COURT. If you wish to defend against the claims set forth in the
following pages, you must take action within twenty (20) days after this Complaint and Notice are
served, by entering a written appearance personally or by attorney and filing in writing with the Court
your defenses or objections to the claims set forth against you. You are warned that if you fail to do
so the case may proceed without you and a judgment may be entered against you by the Court without
further notice for any money claimed in the Complaint or for any other claim or relief requested by
the Plaintiff. You may lose money or property or other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT
HA VB A LAWYER, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW. THIS
OFFICE CAN PROVIDE YOU WITH INFORMATION ABOUT HIRING A LAWYER.
IF YOU CANNOT AFFORD TO HIRE A LAWYER, THIS OFFICE MAYBE ABLE TO
PROVIDE YOU WITH INFORMATION ABOUT AGENCIES THAT MAY OFFER LEGAL
SERVICES TO EliGmLE R.,sONS AT A REDUCED FEE OR NOT FEE.
.\\~ 9' 6V
. ~ ,\tf\'?J' . . ;,\':f.. .
Lb/1/AA Jij7dM~ @ a. 'ycPt 7~ ~/'~
~7r' Cum6'erlanJTh~my Bar Association
7/7 -,) 11- 3 7';;< ~ 2 Liberty Avenue
Carlisle, PA 17013
~ -r' 79 ~ -,0/5/ aJer..e (717) 249-3166
~.
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RECEIPT FOR REFUND
------------------
------------------
Cumberland County Prothonotary's Office
Carlisle, Pa 17013
Receipt Date 10/17/2005
Receipt No.
169830
SOUDER JEFFERY L
5845 SPRING TREE COURT
ENOLA, PA
Case Number 2005-04091
Remarks
REFUND FOR BLANK COPIES
---------------------- Distribution Of Adjustment ---------------------------
Transaction Description This Adj
COPIES 12.00-
OVERPYMNT/RFND 12.00
JEFFREY 1. SOUDER AND
MARY ELLEN ROBINSON
IN THE COURT OF COMMON PLEAS OF
CUMBERLAND COUNTY, PENNSYLVANIA
v.
THE MCNAUGHTON COMPANY:
d/b/a MCNAUGHTON HOMES,
INC. : NO. 2005 - 4091 CIVIL TERM
IN RE: PRELIMINARY OBJECTIONS OF DEFENDANT
MCNAUGHTON HOMES. INC.
BEFORE GUIDO. J.
ORDER OF COURT
AND NOW, this 8TH day of NOVEMBER, 2005, the parties having agreed that
paragraph 22 of the contract requires this dispute to be submitted to mediation in
accordance with the Rules and Procedures of the Real Estate Dispute Resolution System,
they are ordered to proceed expeditiously and in good faith to conclude those
proceedings. These proceedings are stayed pending the completion of mediation. This
matter may be relisted by either party upon the conclusion of media'
Edward E. Guido, J.
Elizabeth 1. Goldstein, Esquire
415 Fallowfield Road, Suite 301
Camp Hill, Pa. 17011
John J. McNally, III, Esquire
305 North Front Street
P.O. Box 999
Harrisburg, Pa. 17108 - 0999
fl-)J- v~ (~~
.~
%
Court Administrator
/,
n ~,~
.7
"..'
11)
:-;
7?
......-'..1
J:'"'
:;I..J
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661187851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17l 08-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYL VANIA
CNIL ACTION
v.
No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INe.
Defendant
JURY TRIAL DEMANDED
v.
JEFFREY A. WILBUR PLUMBING &
HEATING, INe.
6508 Brandy Lane
Mechanicsburg, PAl 7050
Additional Defendant :
NOTICE TO ADDITIONAL DEFENDANT
YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set
forth in the following pages, you must take action within twenty (20) days after this Notice and
Complaint are served, by entering a written appearance personally or by attorney and filing in
writing with this Court your defenses or objections to the claims set forth against you. You are
warned that if you fail to do so, the case may proceed without you and a judgment may be
entered against you by the Court without further notice for any money claimed in the Complaint
or for any other claim or relief requested by the Plaintiffs. You may lose money or property or
other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IFYOU
DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE
THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET HELP.
Cumberland County Bar Association
32 S. Bedford Street
Carlisle, P A 17013
(717) 249-3166
(800) 990-9108
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION
v.
No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INe.
Defendant
JURY TRIAL DEMANDED
v.
JEFFREY A. WILBUR PLUMBING &
HEATING, INC.
6508 Brandy Lane
Mechanicsburg, P A 17050
Additional Defendant :
NOTICIA
LE HAN DEMANDO A USTED EN LA CORTE. Si usted quiere defenderse de estas
demandas expuestas en las paginas siguientes, usted tien viente (20) dias de plaza al partir de la
fecha de la demanda y la notificacion. Usted debe presentar una apariencia excrita 0 en persona 0
por abogado y archivar en la corte en forma escrita sus defensas 0 sus objeciones alas demandas
en contra de tomara medidas y puede entrar una orden contra usted sin previo aviso 0
notificacion y por cualquier queja 0 alivio que es pedido en la peticion de demanda. Usted puede
perder dinero 0 sus propiedades 0 otros derechos impotantes para usted.
LLEVE EST A DEMANDA A UN ABOGADO IMMEDIA TEMENTE. SI NO TIENE
ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE P AGAR TAL SERVICIO,
VA Y A EN PERSONA 0 LLAME POR TELEFONE A LA OFICINA COY A DIRECCION SE
ENCUENTRA ESCRIT A ABAJO PARA A VERIGUAR DONDE SE PUEDE CONSEGUIR
ASISTENCIA LEGAL.
Cumberland County Bar Association
32 S. Bedford Street
Carlisle, P A 17013
(717) 249-3166
(800) 990-9108
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CNIL ACTION
v.
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
: JURY TRIAL DEMANDED
v.
JEFFREY A. WILBUR PLUMBING &
HEATING, INC.
6508 Brandy Lane
Mechanicsburg, P A 17050
Additional Defendant :
JOINDER COMPLAINT OF DEFENDANT THE MCNAUGHTON
COMPANY d/b/a MCNAUGHTON HOMES. INC.
AGAINST ADDITIONAL DEFENDANT JEFFREY A. WILBUR
PLUMBING & HEATING. INC.
Defendant The McNaughton Company d/b/a McNaughton Hornes, Inc.
("McNaughton"), by and through its undersigned counsel, hereby files the instant Joinder
Cornplaint against Jeffrey A. Wilbur Plurnbing & Heating, Inc. ("Wilbur") and in support
thereof states the following:
1. McNaughton is the original Defendant in the above-captioned lawsuit.
2. Plaintiffs are the original owners of a home in a development known as
Westbury, with an address of 5845 Spring Tree Court, Enola, Curnberland County,
Pennsylvania.
3. Plaintiffs entered into a Sales Agreernent with McNaughton on December
28, 1996 for the purchase of a lot and the construction of a horne.
4. The home was built by general contractor McNaughton.
5. Plaintiffs have filed suit against McNaughton alleging breach of the sales
agreernent, fraudulent rnisrepresentation, negligent misrepresentation, innocent
rnisrepresentation, negligence, violation of the Interstate Land Sales Act, violation of the
Real Estate Seller Disclosure Act, unfair trade practices and breach of the implied
warranty of habitability, all secondary to a purported latent construction defect in the
home and failure to remediate the purported latent defect. (A copy of Plaintiffs'
Complaint is attached hereto as Exhibit "A").
6. Plaintiffs' causes of action all relate to McNaughton's alleged failure to
extend a pipe running from the drain of the rnaster bedroorn shower all the way outside of
the horne, instead extending the pipe to a basement crawl space which was then insulated
over. (See Exhibit "A" at ~~ 14-19 and 42-45).
7. Paragraphs 14-19 and 42-45 read as follows:
14. Unbeknownst to Plaintiffs, on the date they took possession
of the Residence, the shower in the bathroom in the master
bedroorn of the Residence ("the Shower") was not hooked
up to the rest of the plumbing in the Residence.
2
15. Unbeknownst to Plaintiffs, at the date they took possession
of the Residence, the Resident's Shower water could not be
channeled out of the house and into the sewer system
because the pipe or pipes (herein the "the Unconnected
Pipe") leading frorn the drain of the Shower into a crawl
space with a barrier board opening in the basement ("the
Crawl Space") was unconnected to the rest of the
Residence's plumbing.
16. Unbeknownst to Plaintiffs, frorn the date they moved in the
house until May 23, 2004, all of the water from the Shower
drained into the Crawl Space.
17. Had McNaughton disclosed to Plaintiffs that the Shower
was not properly connected to the Residence's plurnbing,
they would not have purchased the Residence.
18. During construction of the Residence, McNaughton and/or
its agent or agents, left the Unconnected Pipe, so that all of
the Shower's water was channeled directly into the Crawl
Space and not out to the sewer.
19. During construction on the Residence, McNaughton and/or
its agent or agents actively concealed the plumbing problem
by covering up the Unconnected Pipe with insulation.
42. Upon further inspection, the Plaintiffs discovered that the
mold frorn the Crawl Space has spread frorn the Crawl
Space insulation into the Residence's basernent, heat ducts,
floor joists, and carpet.
8. Wilbur was the plurnbing subcontractor for the construction of the home
located at 5845 Spring Tree Court, by Standard Form Subcontract Agreement dated
February 8, 1995. Wilbur has a copy of said Agreement in his possession.
9. Wilbur is and was at all rnaterial times a corporation organized and existing
under the laws of the Commonwealth of Pennsylvania, conducting business in
Curnberland County, Pennsylvania.
3
10. At all material tirnes, Wilbur acted by and through its actual and/or
apparent agents, servants, workman or ernployees, including Jeffrey A. Wilbur, who were
acting in the course and scope of their actual and/or apparent ernployrnent or agency with
Wilbur.
11. McNaughton believes, and therefore avers, that if Plaintiffs suffered
injuries or damages as a result of the liability imposing conduct claimed in Plaintiffs'
Complaint, which liability imposing conduct is specifically denied, then Plaintiffs'
injuries and darnages arose solely out of the liability imposing conduct of Wilbur.
12. If it is determined that Plaintiffs are entitled to recover any or all of the
alleged damages set forth in their Complaint, then Wilbur is solely liable to the Plaintiffs
or, in the alternative, Wilbur is liable over to McNaughton for contribution and/or
indemnification or, in the alternative, Wilbur is jointly and severally liable on Plaintiffs'
causes of action.
4
WHEREFORE, McNaughton demands the following:
1. Judgment in its favor, together with costs;
2. Judgment that, if there is any liability to Plaintiffs, Wilbur is
solely liable to Plaintiffs; and
3. In the event that there is a verdict recovered by Plaintiffs
against McNaughton, that McNaughton may have judgment
over and against Wilbur by way of contribution and/or
indemnification for the amount recovered by Plaintiffs
against McNaughton, together with costs.
Respectfully submitted,
THOMAS, THOMAS & HAFER, LLP
By:
~(S~
Date: r 2. (ZJt (0):
JOH J. McNALLY, III, ESQUIRE
DEREK D. BAHL, ESQUIRE
:391085
5
. ,
.
EElUlITCATlOl'i,
I have read the foregoing docume nl and be.rcby affirm tha.t it is true and C01Ject to
the best of my personal knowlfldge, infOi'mation and bfllief. Thill Verification and
statement is made subject to the penalties of 18 Pa.C.S. ~ 4904 :relating to unswoz11
falsification to authorltiCll. I verlfy that lil1 the statements made in the foregmng are true
and cozrect and that false statements may Sllbjeot me to the penalties of 18 Pa.C.S.
~ 4904.
Date: /J-.oJ?.S-
~~
Vicki Shlil'1llnn
The McNaughton Company
-...,
t xA;b/f If
In the Court of Common Pleas
Cumberland Countt, Pennsylvania
Jeffery L Souder
and
Mary Ellen Robinson
Plaintiffs
Civil Aotlon-Equlty and Law
v.
Civil Division
The McNaughton Company .
dlb/a-McNaughton Homes, Inc.
Defendant
No.
:
JURY TRIAL DEMANDED
COMPLAINT
AND NOW, oomas the PlaIntiffs. Jeffery Souder and MaiY Ellen Robinson by
their legal oounsel, Keefer, Wood, Allen & Rahal, LLP, and pleads the foUowlng
Complaint
THE PARneS
1. . The Plaifltiff, Mary E8en fl.oblnson (herein "Robinson"), is an adult individual with
an address of 5845 Spring Tree Court; Enola, Cumberland County,
Pennsylvania.
2. The Plaintiff, Jeffery L Souder (herein 'Soudel'11s an adult individual with an
address of 5845 Spring Tree Court; Enola, Cumberland County, Pennsylvania.
3. The MoNaughton Company (herein "Defendanr) is a Pennsylvania oorporation
with a prinoipal add1ess of 4400 Deer Pal:h Road, Suite 201; Hanisburg, Dauphin
County, Pennsylvania
4. McNaughton Homes is a fictitious name of The McNaughton Company.
5. McNaughton Homes, lne. is a fiotitious nama of The McNaughton Company.
VENUE
6. Venue is permitted In Cumberla.nti County I.\nder Pa.R.C.P. 2179(a).
FACTS
7. Robinson and Souder (herein coUectively, "fue Plaintiffs") are husband and wife.
6. The Plaintiffs entered Into a contract with Defendant on December 28, 1996 to
buy Lot 4f43 In the Westbury development C'the Lon, Enola, Pennsylvania and to
construct a home on the Lot ("the Sales Agreement"). A true and correot oOPY of
the Sales Agreement is attached hereto as Exhibit "A' and made a part hereof as
though fully set forth herein.
9. The Westbury development ("Westbury") contains over 100 lots.
10. MoNaughton sold aver 12 lots in Westbury In the first 12 months aflerthe sale of
the first Lot in Westbwy and in every 12 month period thereafter.
11. On March 4, 1997. McNaughton transferred the Lot to the Plaintiffs in exchange
for$18S.000 purchase price.
12. Pursuant to tha oottlraet, McNaughton built a house an the Lot ("the Residence"
and hereIn collectively ~eResidencefl and the Lot will be referenced a.s "he
Rea! Estate").
13. Plaintiffs purchased the Rea.l Estate primarily for personal. family or household
use.
, 4. Unbeknownst to Plaintiffs. on the date they took possession of the Residence,
the shower In the balhroom in the master beldroom of the Residence ("the
Shower") was not hooked up to the rest of the plumbing in the Residence.
15. Unbeknownst to Plaintiffs, at the date they took possession of the Residence.
the Resident's Shower water could not be channeled out of the house and into
the sewer system beoause the pIpe or pipes (herein "the Unoonnected Pipe")
leading from the drain of !he Shower into a crawl space with a barrier beard
opening in the basement ("the Crawl Space") was unoonnected to the rest of the
Residence's plumbing.
16. Unbeknownst to Plaintiffs, from the date they moved in the house until May 23,
:2004, all of the water from the Shower drained into the Crawl Space.
17. Had McNaughton disclosed to Plaintiffs tha.t the Shower was not properly
connected to the Residence's plumbing, they would not have purchased the
Residence.
18. During construction of the Residence, McNaughton and/o( its agent or agents,
left the Unoonnected I'lpe, so that aD of the Show~r's. water was channelad
di(ect!y into the Crawl Space and not out to the sewer.
19. During consbuction on the Residence, McNaughton andior Its agent or agents
actively concealed the plumbing problem by covaring up the Unoonnected Pipe
with insulation.
20. The Crawl Space has no doors to allow entry.
21. MoNaughton and/or its agent or agents communicated to Plaintiffs that there was
never any reason to enter the Craw! Space.
22. The punch list prepared by McNaughton did not inolude the necessary
connection of or repair of the Unconnected Pipe.
23. McNaughton never wamed Plaintiffs about the Unconnected PipE!.
24. McNaughton represented to Plaintiffs that prior to Plaintiff$ moving into the
Residence, McNaughton's construction field manager would conduct his own
inspection based on an extensive check-list, and that during the inspection, the
construction field manager would review every component of the Residence to
make sure It would meet McNaughtons' standards before tha Residence would
be turned over to Plaintiffs:
25. McNaughton represented to Plaintrffs that during the new rome orientation
meeting, the construotion fiekl manager would give them a thorough explanation
of their responsibilities Tor maintaining the Residence.
26. During the new home orientation meeting, McNaughton's construction field
manager advised Plaintiffs not to enter into the Residenoe's erawl spac::ss.
27. During the meeting between Plaintiffs and MoNaughton's construction field
manager, referred to by McNaughton as lhe "new home orientation meeting',
Plaintiffs were not shown the Crawl Space nor were they advised that they
should look into the Crawl Space.
28. Durtng the new home orientation rneellng. McNaughton's construction field
manager misrepresented the condition cfthe Residence by telling Plaintiffs that
the ResIdence was in move-in condition, wlth all major systems complete, and
Residence was ready to be inhabited by Plaintiffs.
29. During the new home orientation meeting, McNaughton failed to dIsclose a
defective condillon of the Residence, the Ul'ICOnnected Pipe.
30. During the new homlil orientation meeting, McNaughton's construction field
lfianagar misre;p~resentea the cendRion of the Residence's plumbing by indicating
to the Plalntiffs all shQWe/'$ and tubs were complete.
31. On June 20, 1897. the date on which McNaughton turned over possession of the
Residence to PlaintifflO ("the Closingj, M~ughton and/or its agent or agents
represented thca condition of the Residence to the Plaintiffs that the Residence
was in move-in condition, with aU major systems complete, and ready to be
inhabited by Plaintiffs.
32. . At the Closing, MoNaughton and/or his agent or agents failed to disclose a
defectiVe condition of the Residence, the Unconnected Pipe.
33. At the Closing, McNaughton and/or Its agent or agents did not advise PlaintIffs
ahom the Unconnected Pipe.
34. Plaintiffs relied on McNaughton's expertise in horne construction and did not
inspect the Crawl Space themselves at the time of the new home orientation
maeting or Closing.
35. Souder entered the Crawl Space for the first time on May 23, 2004 because his
water bill was unustlally high, so he wanted to check whether the pipe connected
to the oulside faucet was cracked.
36. When Souder entered the Crawl Space on May 25, 2004, he found that the pipe
to the outside faucet was nct cracked but he saw a significant amount of black
mold along the foundation wall and on the insulation in the Crawl Space.
S7. Souder then pulled down the black, moldy insulalion to try to determine the
source of the mold.
sa. When Stluder pulled down the blaCk, moldy insulation, he saw the Unconnected
Pipe.
39. The Plaintiffs turnecl 0/1 and off the upstairs water faucets and showers and
determined that the Unconnected Pipe channeled the Shower's waste water into
the Crawl Space.
40. The Unconnected Pipe constitutes a latent defect.
41. The PlaintiffG have not used the Shower since learning that the Unconnected
Pipe channeled waste waler into the Crawl Space.
42. Upon further inspection. the Plalntlffs discovered that the mold from tile Crawl
Space had spread from the Crawl Space insulation into the Residence's
basement. heat dUcts, floor joists, and carpet
43. . The mold in the Resid~ncs's heat ducts have caused mold to be airborne, and
hence breathed In by the Plaintiffs.
44. The Plaintiffs have expelienoed health problems caused by the mold created
from the Shower water draining into the Crawl Space.
45. Water being expelled from the Unconnected Pipe compromised the foundation
of the Residence's back yard patio causing the patio to sag.
46. The Plaintiffs first contacted McNaughton on or about May 24. 2004, informing IT
oHhs problem.
47. The plaintiffs and Plaintiffs' counsel repeatedly attempted to resolve this matter
from on or around June 1, 2004 until the fU1ng of this Complaint.
4B. McNaughton has refused to do anything to solve problem.
49. Substantial remediation needs to be complete in order to put the Residence in
the condition It would have been but for !he Unconnected Pipe.
COUNT I
PLAINTIFFS v. MCNAUGHTON
BREACH OF CONTRAC't
50. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
51.. DaHverlng the Residence to Plaintiffs at ClosIng with the Unconnected Pipe
constitutes a material breach oftha Sales Agreement.
52. McNaughton's failure to Inform Plaintiffs of the existence c1 the Unconnected
Pipe oonstitutes a material breach of the SaJ~ Agreement.
5$. Plalntiffs have futly complied with their obligations under the Sales Agreement.
54. Plalntiff$ have lost the benefit of the bargain of the Sales Agreement as the
result of McNaughton's breaches of the Sales Agreement.
55. As a direct and fori!lseeable result of McNaughton's material breaches of the
Sales Agreement, the Plairmtfs have suffered and continue to suffer. direct,
incidental, and consequential damages.
WHERFORE, the Platntlffs request 1he following: (1) a decree in equity
rescinding the Plaintiffs' purchase 01 the Real E$tate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lest appreciation on the Real Estate, and aU other damages or costs arising from
McNaughton's breaehes 01 the Salas Agreement; (2) in the alternative, an order
entering judgment in favor of the PlaIntiffs and agalnst McNaughton In the an amount in
excess of the Court's arbitration of Ilmlt of $35,000 and (3) together with either of the
foregoing, an order finding MoNaughton !lable to the Plaintiffs for costs. and other
appropriate remedies under Pennsylva'lia law, in an amount to be determined by the
CotJrt.
COUNT II
FLAfNT/FFS v. MCNAUGHTON
FRAUDUl..ENT MISREPRESENTATION
56. All of the foregoing paragraphs are hereby Incorporated by reference as though
fully set forth herein_
57. MoNaugton and/or its agent or agents had actual andlor constructive knowledge
of the UnconneCfed Pipe.
58. Despite its actual or constructive knowledge of the proDlem of the Unconnected
Pipe, McNaughton and/or its agent or asents failed to disclose the prQblem to
Plaintiffs.
59. Instead, MoNaughton by and through its employees and agents made the
following material misrepresentations beth at the new home orientation meeting
and at the Closing that the (1) plumbing W-o>,S complete, (2) all home systems
were complete, (3) th~ entire Residenoe was in move-in condition, and (4) the
only known defects were contained on the punch-Iist--when it had aotual and/or
constructive knowledge that '\hIs was false, with the intent to induce Plaintiffs to
purchase and take possession of the Real Estate.
6Q. Plaintiffs relied on the misrepresentations concerning the condition of the
Residence made by McNa.ughton by and through its employees and agents.
61. Plaintiffs' reliance of McNaughton's representations concerning the condition of
the Residence was reasonable.
62. McNaughton's inspection of the work of tl1e person who put in the Unconnected
Pipe was either omitted Qr performed recklessly.
63. McNaughton or its agent or agents' decision to conceal the Unconnected Pipe
with Insulation was eIther intentiot'tal or reckless.
S4. The Plaintiffs would oat have purchased and takan possessfon of the Real
EstErle if they had known of the problem with the Unconnected Pipe.
65. The Plaintiffs have suffered injury as a direct result of fraudulent
misrepresentations by McNaughton.
66. The repairs nacessazy to remediate the damage caused by the Unconnected
Pipe and the mold it has caused are substantial.
S7. Plaintiffs have been deprived the benefit of the bargain because they were
fraudulently induced to purahase and take possession of the Real Es1ate.
e6. FUl1har, In making its frauclulent misrepresentations, Mc:Naughton has acted
outrageously and willfully with malice and reckless disregard toward the rights of
the Plaintiffs.
WHERFORE, the P/aintifft request the following: (1) a deoree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Pla.intiffs covering all money the f:>laintiffs paid lor the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arIsing fram .
McNaughton's fraudulent misrepresentations; (2) In the alternative, an order entering
judgment in favor of the Plaintfffs and against McNaughton in the an amount in excess
of the Court's arbitration of limit of $35,000 and (3) together with either of the foregoing,
an order finding McNaughton liable to !he Plaintiffs for oasts, conseq(,lential and punitive
damages, reasonable attorneys' fees, and other appropriate remedies under
Pennsylvania law, in an amount to be determined by the Court.
COUNT 1lI
PLAINTIFFS v. MCNAUGHTON
NEGLIGENT MISREPRESENTATION
69, All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
{7C McNaughton and/or its agent or agants failure to Inspect the work of the person
who left the pipe unconnected was negngent.
171, fhe decision of McNaughlon and/or its agent or agants to cover over the
Unconnected Pipe with insUlation was negligent.
72. McNaughton negligently misrepresented that: (1l the plumbing was complete;
(2) all home Systems were complete; (3) the Residence was in'move-in
condition; and (4) the only known defects Were contained in the punoh list where
these were false, negligent, and material, and were made to induce the Plaintiffs
to purChase and take possession of the t:l.eal Estate.
73. McNaughton's inspe<::tion practices ami that of Its smployees, agents, and sl,lb-
contractors work are negligent
74. . McNaughton's inspection of the work which left the Shower unconnetted to the
plumbing was negngent.
75. In reliance on McNaughton's false representations concerning the condition of
th6 Resid6nce. Plaintiffs purchased the Real Estate.
76, Had McNaughton fdentified the problem of the Unconnectad Pipe, Plaintiffs
would not have purchased and taken possession of 1he R.eal Eslate.
77. Due to the negligent misrepresentatlons of McNaughton and/or Its agent or
agents, the Plaintiffs have been denied fue benefit of the bargain of their
purohase of ths Residence.
78. Due to the negllgent misrepresentatIons of McNaughton and/or its agent or
agents, the Plaintiffs have been direclly and slsnlficantly damaged.
79. McNaughton, In making negligent misrepresentations, have acted with gross
negligence and outrageous!yand willfully with malice and reokless disregard
towards the rights of Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real ESlats, together with restitution by
McNaughton to the Plaintiffs ooverlng all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from
MoNaughton's negligent misrepresentations; (2) in the allernative. an order entering
judgment in favor of the ?laintlfls and against McNaughton in the an amount In excess
oftheCourt'sarbitration of limit of $35,000: and (3) together with either of the - -
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, consequential
a..'ld punitive damages. raasonable attorneys' fees, and other remeclies under
Pennsylvania law, in an amount to be determined by the Court
COUNT IV
PLAINTIFFS v. MCNAUGHTON
INNOCENT MISREPRESENTATION
80. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
81. McNaughton and/or its agent or agents misrepresented that (1) the plumbing In
the Residence was complete: (2) all home systems were complete: (3) the house
was in move-in condltioni and (4) the only defects ofthe Residence were listed
on the punch List.
82. These representations were false, material, and made to Induoe Plaintiffs to
purchase and take possession of the Real Estate.
83. Aoting injustifiable and detrimental .l1iIliance on these inoom~lete. and inaccurate
representations, Plaintiffs purchased the Real Estate.
84. Due to misrepresentations by McNaughton, the Plaintiffs have been daprived of
the benefit of the bargain they were Induced to enter 1n purchasing the Real
Estate.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with rsstitution by
McNaughton to the Plaintiffs QOvering aU money the Plaintiffs paid for the Real Estate,
their lost apprecIation on the Real Estate, and all other damages or costs, arising from
McNaughton's innocent misrepresentations; (2) in the alternative. an order entering
Judgment In faver of the Plalntiffs and against McNaughton in the a.n amount in eXcess
of the Court's arbitration of limit Of $35,000: arid (S}together wltheither of the
foregoing, an order finding McNaughton rlabJe to the Plaintiffs for costs, consequential
and punitive damages. reasonable attorneys' fees, and other remedies under
PennsylvanIa law. in an amount to be dete,mined by the Court.
COUNT V
PLAINTiFFS v. MCNAUGHTON
NEGUGENCE
ss. All of the foregoing paragraphs am hereby incorporated by reierence as thou.g.h
fully set lorth harein.
86. McNaughton's employee or agent was negligent in installing the plumbing by
leaving the Unconnected Pipe to drain directly into the crawl space rather than to
be channelsd out of the Residence by the Residenoe's plumbing,
67. McNaughton andfor its agent or agents inspection of the work 01 the person who
I$tt the pIpe unconnected was unreasonable and below the standard in the
Industl)' in the local area and elsewhere.
se, McNaughton and/or its agent or agenw failure to Inspect the work of the person
who left the pipe unconnected was unreasonable and beloW the standard in the
industry In the local area and elsew\1$re.
89. McNaughton or its agent or agents decision to cover over the Unconnected Pipe
with Insulation was unreasonable and below the standard in the industry in the
local area and elsewhere.
90. MoNaughton and/or its ~ent or agents negligence directly caused significant
damages to PlaIn1iffs -
WHERFcrRE,iliiiPlaiI'ltiffs requeSt the following: an order entering Judgment in
favor of the Plaintiffs and against McNaughton In the an amount in exceSS af the
Court's arbltra.tion of [hlln of $35,000 and an order llmiing McNaughton liable to the
. Plaintiffs for costs, reasonabte. attorney' fees. consequential and punitive damages. and.
other appropria.te remedies under Pennsylvania law, in an amount to be determIned by
the Court.
COUNT VI
PLAINTIFFS y, MONAUGHTON
VIOLATION OF TH5lNTERSTATe LAND SAJ.ES ACi
91. All of the foragoing paragraphs are hereby incorporated by reference as though
fullysetfcrth herein.
92. The Sales Agreement did not obligate McNaughton to complete the oonstruction
of the Residence within two Years.
93. McNaughton and/or ils agent or agents employed a device, scheme, and artifice
to defraud Plaintiffs concerning the condition of their Residence both before and
after Closing.
94. McNaughton obtained Plaintiffs money in the form of the purchase price as a
result of untrue statements and omissions of material fact concerning the
condition of the Residence, which were mads by McNaughton and/or its agent or
agents to mislead Plaintiffs with respect 10 information pertinent to t,e Real
Estate.
$5. lviCl\iaughton and/or its agent or agents engaged in the practice of making
misleading statements concerning the condition of the Residence. which
operated as a fraud or deceit upon Plaintiffs.
86. The Interstate Land Sales Act, 42 U.S.C.A. 9 1701 at seo.("the Interstate Land
Salea-Ao!") entitles Plaintiffs to recision and damages.
S7. Plaintiffs' rights under the Interstate Land Sales Act are not walvable or voidable.
98. McNaughton and/or its agent or agents violations of the Interstate Land Sales
-Act. induced Plaintiffs to purcha$~e arid takeposssssiOf'lof -the Real Estate. ..
99_ McNaughton andlor ita agent or agents violations of the Interstate Land Sales
Act resulted in significant damages to Plaintiffs.
WHERFORE, the Plaintiffs reque$t the following: (1) a deoree [n equity
rescinding the Plafntifis' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and an other damages or costs, arising from
McNaughton's violatIons of the Interstate Land Sales Act; (2) in the alternative, an order
.
entering judgment in favor of the J:llaiJrtim and e.gainst McNaughton in the a.n amount In
excess or the Court's arbitration of limit of $35,000: and (3) together with either of the
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, oonsequential
and punitive damages, reasonable attorneys' fees, and other appropriate remedies
under federal andfor state Jaw, in an amount to be determined by the Court.
COUNT VII
P!.AINTlFFS v. MCNAUGHTON
VIOLATION OF THe REAL ESTATE SELLER DISCLOSURE ACT
1 QQ, All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth hereIn.
101. The foregoing acts and o(l'lissions by McNaughton and its agent or agent;
violated the Rea! Estate Seller Disclosure Act. 66 ?S. 9 1201 at seq. (1996),
effective SO da.ys after July 2, 1996 (repea\ood and reoodlfied effectlve Oecember
20. 2001 at 68 Pa.C.S.A 91301 at seq.).
102. McNaughton provided a limited warranty on the Residence.
103. For the items Included in the limited warranty, McNaughton provided cQverage
lar ths lesser of the following: one year Qr the mat1ufacturel"s wa!l'anty.
1M. As McNaughton did not provide a one-year or greater warranty on the entire
.____ __. ______' - - __._' _'__..__,~_ - __'''_.__,_ __.__ _._ ________h.
Residence. McNaughton was required to provide Plaintiffs wlth a disclosure
statement specified by the fleal Es~te Seller Disolosure Act.
105. The disclosure specified by the Real Estate Seller Disclosure Act required the
sellei to state whether It was "aware of any leaks, baclwps or other problems
lelating'to any of \:he plumnlng".
106_ McNaughton failed to provide Plaintiffs with a disclosure statement meeting the
requirements of the Real Estate Seller Disclosure Act
107. Section 10:32 of the Real Estate Disclosure Act, 68 P.S. ~.i032, provides for a
private cause aT action for damages against any person who violates thl!l act.
108. Mc;Naughton's failure to provide the required Disclosure Staternent under the
Real Estate Disclosure Act resulted in substantial damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: an order entering jud9ment in
favor of the Plaintiffs and against McNaughton in 1Ioe an amount in excess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for ca:rts,consaquential and punitive damages, and other appropriate
remedies under Pennsylvania law, in an amount to be determined by the Court.
COUNTVlII
PLAhVTlFFS v. MCNAUGHTON
VIOLATION OFTHE UNFAIR TRADE PRACTICE.S AND
CONSUMER PROTECTION LAW
109. All of the foregoing paragraphs are hereby Incorporated by re1erence as tnough
fully set forth herein.
110. The Plaintiffs are consumers within the meaning of the Unfair Trade Practices
and Consumer Law ("UTPCPL') 73 Pa.C.SA. ~ 201.1 st seq.
.~ . 111. McNaLlgbtoo tailtid tq pro'(lde therg:l:luJred D1~dosure. St(lte.r!i~n~ under. the ReaJ ._
Estate Disclosure Act.
112. The failure to provide a Disclosure Statement was intended to mislead the
Plaintiffs about the ccmpletaness of plumbing In the Residence.
113. McNaughton and/or its agent or agents oonstruction of the Residence's plumbing
was of a nature and quality inferior to or below the standard agreed to in writing.
114. McNaughton and/or its agent or agents misrepresentations that: (1) the
plurnbing was oompkrte: (2) all home $ystems were complete; (3) the Residence
was in move-In oondition: and (4) the only known defects were contalned in the
punch list were false, negligent, and material, and were made to induce !he
?Iaintifls to purchase and take possession of the Rei!\! Estate.
115. McNaughton and/or its agent or agents misrepresentation were fraudulent and
deceptive, which created a likelihood of confusion and misunderstanding by
PlaintITfs about the condition of the Residence.
116. As a result of McNaughtoh and/or its agent or agents misrepresentation
oont:emlng the condffion of the Residence, the Plaintiffs have directly suffered
damages.
117. Hael the Disclosure Statement for the Froperty identified the plumbing problem,
the Plaintiffs would have deolded not to purel1ase and take possession of the
Real Estate.
118. Had the Plaintiffs known the true condition of the Residence, they would have
not purchased and taken possession of the Real Estate
119. Necessary repairs will require very substantial cost
120. . As a rasult of the foregoing unfair or deceptive acts or practides, the Plaintiffs are
entitled, by virtue of the provisions of the UTPCPL., to recover the fo!lowing:
(a)
actual damages to fully repair the damages resulting from the
LlnoorlDeci8Cl Pipe: _ _ _ _ _ . . _ __ _
(b)
treble damages; and
(c)
Reasonable counsel fees and eosts.
WHERFORE. the Plaintiffs request the following: an order entering Judgment In
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitra1ion of limit of $35,000 together with an order finding McNaughton liable
to the Plaintiffs for costs, reasonable attorneys' fees, treble damages, and other
.
appropriate remedies under Pennsylvania law, 11'1 an amount to be d9termined by the
Court.
COUNT IX
PLD.TNT/FF$ v. MCNAUGHTON
BREACH OF IMPLIED WARRANTY OF HABITABILITY
121. All of the foregoing paragraphs are hereby inoorporated by reference as though
fully set forth herein.
122. From the time of the Closing until present, the Residence is not fully functional
and habitable because Plalntiffs cannot use the Shower.
128. McNaughton has breached Plaintiffs' implied warranty of habitability.
124. McNaughton's breach of the implied warranty of habitability has resulted in
signlticant damages to Plaintiffs.
WHE:RFORE, the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton In the an a.mount in excess of the
. ... Court's arbitration of limit of $35,000 and an order finding McNaughton liable 'lo the
Plaintiffs for costs, punitive damages, consequential damages and other appropriate
remedies under Pennsylvania law, in an amount to be determined by the Court.
i<:e~ESR.-"'~Q9!). ~_~N.~ ~:!l-F.
Dated: ~4...o'S'
By; ~.-I ~-
Elizabeth J. Goldstein, Esquire
PA I.D. # 73779
Attorneys for Plaintiffs
415 Fallowfleld Road. Suite 301
Camp Hill, FA 17011
717-612-5800
,
EXHIBIT "A'!
>
I ~u..,.. .'''''' "J:.l.."""~ . [~Vtl l".u~'lJ rU""'''~J..~~J'' .' ',.
I 7!m--4e->-arv ~p '. . ....:, , .
LPA_ HCSNSED BROKER FA. LICENSED i3.ROKER' ,.' .
This Agreement rr1~d, tb;:' eJ E? ~ day of
l!?CA Je~
]
1. PRINCIPALS a.tw....
[resldine at Oe>
herein.r,or <:allee! S.II~nd
(r~di'('lg at
herolnaf,.r Clllled lluy.r, .
~. PROPERTY: Seller hereby ~grees 10 ..U lUld ""ever to Iluyer, who hereby "1\1'".... to'~l.I11:!ul.s.: All. THAT CER.TAIN LoI or pi""
or &>: d III!I.!!J>uIIdin . an improve ."Is l~n ereo ,i~ any. know : .!:r;"'f' ~ L.t.:5 ~10ri>U~
. .
3. ZONtNG: ;;:onina C1os.si/ic:ation
Failllre of thisAllroemen.t to .antolu Ibe =mg oIasslli...tlon e.lCOpl in _.. w~. thep"'p,tty (or .aen portel the:reaf, if SUo~ivi<:l.ble)
is zoned sol=Iy Qr plimanly to permit slngle-fwlly dwemngs ,1ta.U """del thli Asr......"t v"i~.ble at the option of the Buy:r lUlC ir \'Old""
deposits tendered by tile BuyOl' slta.ll b~Af.W'llcd III tbe .BUY~lth"ut. n:qulr~IJl~~u}1.,ac:tion." , .,.
~. TIRMS, (l) Pureh.se Price fOi"/~ ~,.Jd~ ,,,":"..A':~ _~~~. .
. . ".: (S I ?:-$.x0: -
to b. po.ie! by rile lluy,;r u. follo"'s: .. .. ..... ..... " '" ..
(b) .l)EP.OSt't~~kC,NQt.=IC;!'.~DrUli! ,.... 1":' ;'1'.:,. '1'
ql'e!!m4rl~ r~l;a(wbi~ I.Il h=rrol' B.d2l.g'lflciia~ n_un.~~:"IO.h'''_'.;'.n....l,I,*d....r''''I' Ii -.
.,, 'L. ...
tr~JObel'~td.dCll'b.:=rQr=-;h~ thyaf 1~
(c:) ADbrnQN,A..LDEPOS1TIIIi~c:on.~~Ua: ._ : I Ii. .'_ '., ....
U._r .1._.;........_..._. $_
(~) llA.lA.NCI:oPF'U~:PR.rc;:EIIlI;:a;td:mc:nt- 1 . . :.. ....,..' , ~. ~ .
{QASb, a:nirllJd dl..,lIndlar IlICl1'tp,i t\\Dd!J .---____............_..h..u.......~..in...:h.:..:..!. ./7~" '7~~. ...-
"." . , I'" .
. , . . TOTAL ...........,.,.. i I!{S: ~tl -
{t;-i \Jtri":;apFDva1oi"SQl=-!~!!e=~l'bef!!'P:t(l!: ~J:L da~I:'.~'- ('.~7...:'.-'"1 _ ~~.b...... .
rr) S.._ 'olio made on "' ,..Dr' th. . J..., - ,0101 or. htvr..",i!.:i ;:;= -= l'~
(&] Tbt rcUHlaS Jh211 hll: ;&~IXI: prg.o.ratA. iii g(.II&1d.::I1 dmll: or 1lCUJ~t: 'r~c:I U Il:d;d Ilhd. u.a1;U~.~. i.anr=~ IHI. mQl1B1m Q;P,IrnpUOM, ~~blhlni~m f=o:
=I!. ~......". ~adalil.1n fees IF UJ', ~ odiCI' S':WU ~~ It~. totIdbl:r' with ~ tlUIc:r &.m,bk~ti~llIl"'~ AU Rfah,,;TmB:U<:r~ ~~ be cmtt::d
....al)- un.lc5l OI.hwtr~ pl'OYldc:I bm'iJn.. . ; . h.... I.:..'_-~
$. 1rft,CJ."iJtiV SErTL..EMtIoll' Co:n1N~CV: Thil- a~=d i: ~u,,~ 10 theJertl~t d(Su.,l:f~ p.ro~ lQ~c:d ~ . A. 1=
. ...-'.1 .
. oa.. bcfcurc .
fl. F1/o1:~C1NC C:Ora1rv~c;Y: Tbl, IiIu=mCDt is .-bjG::!: lD the ii~~ns iI& rollttMm . .
,.) PRII'ICIPIl.I.AUOUIon" /4/:; O.otJ.. - T'l'p% I"..w~" :~.' .:..uNLMUMmR~ 3/)o/~
MAXIMUM lrnt>.1. _ "'0' . .., ~
I~ MT! -; 7" .,. MM!MUM nrrAl.. po,,,,,,. INCLUDINQ !.Of,>I...o",,,,,,,^'l1O>i I'"..!!, TO 91i ~"'" ay TJt1! liUYI::R' ". ~
.'tSl.MINALD,Il-r.erat'OtltdaiD2Rn~CammiDDcDt ,_ ~nfl"-H'~ /z9.? _ __ __ _ _ _ _ _ '\
8t'olllcr mu IldYlJe..BlIYerorpas:lll"bl1:soUrd:I otJIIMPI!' IUad$" but cUlUlOl aaum~ rcsp;.l:Whi1ib' F6I"ofQ.iblr1a lh!ycr'"Ji monp.,c. Jrs:aid k1u: ClAZtIlll:lc g.~ined
1!1 bdd.a. ~ lbl$ J\at'l!!l!!;IIcql JP;dl bI: I'lULL. AlQ VQrD am all dl!1'6J!1 DllllJd=:; ~ be. roI:W'D..d. tD.t!Ie: ~.1;t' Qn.or bdon: d&d.lli oC'l"llemcm u p!'Prir:l;t:{ tledn,
tbl r:!:'=~ =~r:P~~~~dII~ ~Iflt, ine&ksdoa ror .d1i:~1! lDullWllIWI - jo. =hnuiw IOtln flOdll.b;: 5c;l1u'1 ~ral h~r.
Sbould ,..11_ r.J1JD e..k..."" _,"""........... 'fitIIj:,... opldrol!~"" t ."Ub..'llR on.. -rl.. SdIorJ.'!!'Jd<<r~ tsl....dllr d.,.ih".,.,." 'd,
m t)qcj1lre 1m Alll'rt:ftlc=M NUU. AND vorn....bid!. ~ an moniti paid DII Bl:mUDl_ill b; ~ ID Sr:n'll[" lIS m;r~ d2m;l~. $dbj~ \Q ~ RJ.alcs ami
.RcI;ll.l&l.i_ or tJm Pcnb&t'yauia. .RRI ~ ~. ar .
(i.i) luiabRQQrGC'I'I'Iillalnal.icl: to dtiI:iBQ1a'Isrdl4~tt.tecl.~nE l2W;A~NtJ1,L.Jo.lllDVOIl:), u's: ~IUo11J'1d ~fttlrqllld~~ded rtlTm I..b.i!hramllh,
_ ____._ ::..:~~1n,~Dl~:=::r~-=~_=~~~~==I_~~~'~~!_~.:~_~~_~~~.~~_~_~~ll~_~~h~
(~ Sell~ IlrAtCII. ~~'W:I ,",riUCl'~YIl1d mID. tlI.e~ wstttkmrttt, fmtlh::.!AldIDI,IiI an Qf'bd'1)ft; ~l\r: Iermi.w d.M~ aa ;po;;;IriK. Ifthlt G~ll.~
ii ~UJl r'lll"bl:lttcd wib _ tams .I! .a~nd. ~ w fib ~C'\' ~ ~ iJL ~ ~ IJR .a\ir.=;r..GD l:lt bc'lwc Ibl: 5Pldfial,.dat.;;. SdJcr sbaJ.l himloh;- QpliQD.,
It thM d:am. -or 'J.tS, m~=r lime th~d'. lIi1n-. * b:nD.-1S1 'C:1W Air=m~nt.. 1UU11. tG& 161. hllj'ODd the ft.a of ~pl or ~ COI2l.ID.i.1Inenl. b)' Lhc Sc:Uc:r, Ilr Altl:tll.. 1tI
d.c:buc IhTi~NULL^ND vom..." wrlu.=JrIlIlic: tu lkD~r otWlIber-~ 'l:IQmad.1Llwlzklh Ume:aIl dltpmll mol:'d= paid on a=ounl.ultbt!. r<!lurh-'
tel ~I'tc BUJ:!f.Julaj~J&the~mtml.n:qwre4. b'W.pl'ClYidcG Faria ~ 1:2M:tt11 CtD.I:Il1llG~ ." , .. .....
(d) SdJcr bd1' qro::ilD pa'tbillAspc:miam lit ~ "__!'!it l1IlpllUltll111 =W-taS alUVQf DIIKf G m", bit ~ by lhC lr:ndln& hulitu(ior! br Inmint Olgllnlda.
Ie'). Seller h=br gr=: IQ 'fJiJ.y Jd<illII;ltR<Il mCt~ d"lItOIIm P.lIiau 1lIllL'~ ~n .n&I in. (:;II.Lr. C1r a au,w t1t;.tAWD!; rltrJ:..,;ih! ~1mdinE iiu;IL'.l~ll~ rcquitirls.
my Obi: Ql ~ b( .aICI:rJ:S&id. C=:. pl'O\'i6.iar lobe wLlll .( Did fCl:l dall$' DOt d-.1 ... or ll:Ic. uamu.L 'It tho:; mcn.gaF- _
1. $l'A1"US 01' 'WAT:R oUID .ttWUI ~,.nt!!!r ~~ IlJ~ ()lis pm~ 11 ~ b1: 'WIDI:r aad 'U~
lew=-r. Further, s:llllt 9lUTUltI: lhl( th=Sd ,ySlct!l!' at: fullJ paid (ar IIl'i1d, A.C of;~ d!ll.l: Clr lbb qreddeJU JrI: In lUitfmlCll")Il;lpufldnl ~ . .", If citb: aI~11 ~=
I" ,rIVl,lt:. Sdiu ~ uw hcJJb.t hall: 11101 ~ ~ Uttl: lftUlllciDiW ar from .lIIull1clpal .whlllr!tiet Ih-.r: C1l1bll: lIo1l1cr In'Vrr ~;r ~~..ed:p.f" i~Ib.I~..
a. MUJ'Illl::lPAL lMPROVEM~l'~ SeUer bu IlG ~ ttlollQ!gpllllmJ:l:O~ (m:h ~ ~ld~lIkR. ~ J2,.) =eev- ~~ ~!J.L
Ac:;c;tl tI:I &- ~blle tcIl4 lID,)' ftltUc: inun= Dr & Hi ~~C)' I I'rctI1l !hc DI:pI1n1t111 ~r T:!INlIClI1..IiI:l~
~
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VERIFICATION
I, JEFFERY L. SODDER, st:a.te subj$Jlt to the penalties of the Crimes CDde io.
18 Pa. a.SA. ~ 4904, relating to T.lD,swom falsification to' authorities that the facts
set forth haraL", are true a.nd ccr:rect to t.ba best of my kno....ledge, inforn:w.tion ll!;l,d
belief.
Date:
os
~ t Mv--
.:aY L. SODDER
-----~._~--~- _..--~.__._..
_._-_._-----_._.._-_...-.._~- -
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~
VERIFICATION
I, MAEY ELLEN ROBXNSON, Eit:a.te 6U.biect to the penalties of the Crimes
Code in 18 :Pa. C.S.A. ~ 4904 relating to 'tlJ:l.SW6ruIalsi.fi.aation to autb.o:dties that the
facts set forth herein are true &;Icl co:rreot to the best of my knowledge, wo=tion
and belief.
Date: M' 19)05
I I
~tY~J.EM- bJz,'~
MARY lJt,LEN ROEINSON
------._" -"--~-- ---- --- --"---- ---- -- --- -----------------
... ..' ....J.
CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy of the same in the United States Mail, first class, postage prepaid, to
the following:
Elizabeth J. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfie1d Road
Suite 301
Camp Rill, PA 17011
Date: r J--\ lfIB rt:
Ki berly J. Rain
Legal Secretary to J
t'L
J. McNally, Esq.
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John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17 I 08-0999
Attorneys for Defendant McNaughton
JEFFREY 1. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION
v.
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
v.
JEFFREY A. WILBUR PLUMBING &
HEATING, INC.
6508 Brandy Lane
Mechanicsburg, P A 17050
Additional Defendant :
PRAECIPE TO REINSTATE JOINDER COMPLAINT
TO THE PROTHONOTARY:
Please reinstate the Joinder Complaint filed in the above-captioned matter. A
copy of the Joinder Complaint is attached hereto as Exhibit "A".
Respectfully submitted,
Date:~
N J. Mc LL Y, III, ES UIRE
Att rney J.D. No. 52661
DE EK D. BAHL, ESQUIRE
Attorney J.D. No. 87851
Attorneys for Defendant McNaughton
..
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
CIVIL ACTION
v.
No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
v.
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JEFFREY A. WILBUR PLUMBING &
HEATING, INC.
6508 Brandy Lane
Mechanicsburg, P A 17050
Additional Defendant:
-'J
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NOTICE TO ADDITIONAL DEFENDANT
('",\
YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set
forth in the following pages, you must take action within twenty (20) days after this Notice and
Complaint are served, by entering a written appearance personally or by attorney and filing in
writing with this Court your d~fenses or objections to the claims set forth against you. You are
warned that if you fail to do so, the case may proceed without you and a judgment may be
entered against you by the Court without further notice for any money claimed in the Complaint
or for any other claim or relief requested by the Plaintiffs. You may lose money or property or
other rights important to you.
YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU
DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE
THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET HELP.
Cumberland County Bar Association
32 S. Bedford Street
Carlisle, P A 17013
(717) 249-3166
(800) 990-9108
.
Jolm 1. McNally, Ill, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CIVIL ACTION
v.
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
JURY TRIAL DEMANDED
v.
JEFFREY A. WILBUR PLUMBING &
HEATING, INC.
6508 Brandy Lane
Mechanicsburg, P A 17050
Additional Defendant:
NOTlCIA
LE RAN DEMANDO A USTED EN LA CORTE. Si usted quiere defenderse de estas
demandas expuestas en las paginas siguientes, usted tien viente (20) dias de plaza al partir de la
fecha de la demanda y la notificacion. Usted debe presentar una apariencia excrita 0 en persona 0
por abogado y archivar en 1a corte en forma escrita sus defensas 0 sus objeciones alas demandas
en contra de tomara medidas y puede entrar una orden contra usted sin previo aviso 0
notificacion y por cualquier queja 0 alivio que es pedido en la peticion de demanda. Usted puede
perder dinero 0 sus propiedades 0 otros derechos impotantes para usted.
LLEVE ESTA DEMANDA A UN ABOGADO IMMEDlATEMENTE. SI NO TIENE
ABOGADO 0 SI NO TIENE EL DINERO SUFICIENTE DE P AGAR TAL SERVICIO,
VA Y A EN PERSONA 0 LLAME POR TELEFONE A LA OFICINA CUY A DlRECCI0N SE
ENCUENTRA ESCRIT A ABAJO PARA A VERlGUAR DONDE SE PUEDE CONSEGUlR
ASISTENClA LEGAL.
Cumberland County Bar Association
32 S. Bedford Street
Carlisle, PAl 70 13
(717) 249-3166
(800) 990-9108
John J. McNally, III, Esquire
Derek D. Bahl, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYLVANIA
: CNIL ACTION
v.
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant
: JURY TRIAL DEMANDED
v.
JEFFREY A. WILBUR PLUMBING &
HEATING, INe.
6508 Brandy Lane
Mechanicsburg, P A 17050
Additional Defendant :
JOINDER COMPLAINT OF DEFENDANT THE MCNAUGHTON
COMPANY d/b/a MCNAUGHTON HOMES. INC.
AGAINST ADDITIONAL DEFENDANT JEFFREY A. WILBUR
PLUMBING & HEATING, INC.
Defendant The McNaughton Company d/b/a McNaughton Homes, Inc.
("McNaughton"), by and through its undersigned counsel, hereby files the instant Joinder
Complaint against Jeffrey A. Wilbur Plumbing & Heating, Inc. ("Wilbur") and in support
thereof states the following:
1. McNaughton is the original Defendant in the above-captioned lawsuit.
2. Plaintiffs are the original owners of a home in a development known as
Westbury, with an address of 5845 Spring Tree Court, Eno1a, Cumberland County,
Pennsylvania.
3. Plaintiffs entered into a Sales Agreement with McNaughton on December
28, 1996 for the purchase of a lot and the construction of a home.
4. The home was built by general contractor McNaughton.
5. Plaintiffs have filed suit against McNaughton alleging breach of the sales
agreement, fraudulent misrepresentation, negligent misrepresentation, innocent
misrepresentation, negligence, violation of the Interstate Land Sales Act, violation of the
Real Estate Seller Disclosure Act, unfair trade practices and breach of the implied
warranty of habitability, all secondary to a purported latent construction defect in the
home and failure to remediate the purported latent defect. (A copy of Plaintiffs'
Complaint is attached hereto as Exhibit "A").
6. Plaintiffs' causes of action all relate to McNaughton's alleged failure to
extend a pipe running from the drain of the master bedroom shower all the way outside of
the home, instead extending the pipe to a basement crawl space which was then insulated
over. (See Exhibit "A" at ~~ 14-19 and 42-45).
7. Paragraphs 14-19 and 42-45 read as follows:
14. Unbeknownst to Plaintiffs, on the date they took possession
of the Residence, the shower in the bathroom in the master
bedroom of the Residence ("the Shower") was not hooked
up to the rest of the plumbing in the Residence.
2
15. Unbeknownst to Plaintiffs, at the date they took possession
of the Residence, the Resident's Shower water could not be
channeled out of the house and into the sewer system
because the pipe or pipes (herein the "the Unconnected
Pipe") leading from the drain of the Shower into a crawl
space with a barrier board opening in the basement ("the
Crawl Space") was unconnected to the rest of the
Residence's plumbing.
16. Unbeknownst to Plaintiffs, from the date they moved in the
house until May 23, 2004, all of the water from the Shower
drained into the Crawl Space.
17. Had McNaughton disclosed to Plaintiffs that the Shower
was not properly connected to the Residence's plumbing,
they would not have purchased the Residence.
18. During construction of the Residence, McNaughton and/or
its agent or agents, left the Unconnected Pipe, so that all of
the Shower's water was channeled directly into the Crawl
Space and not out to the sewer.
19. During construction on the Residence, McNaughton and/or
its agent or agents actively concealed the plumbing problem
by covering up the Unconnected Pipe with insulation.
42. Upon further inspection, the Plaintiffs discovered that the
mold from the Crawl Space has spread from the Crawl
Space insulation into the Residence's basement, heat ducts,
floor joists, and carpet.
8. Wilbur was the plumbing subcontractor for the construction of the home
located at 5845 Spring Tree Court, by Standard Form Subcontract Agreement dated
February 8, 1995. Wilbur has a copy of said Agreement in his possession.
9. Wilbur is and was at all material times a corporation organized and existing
under the laws of the Commonwealth of Pennsylvania, conducting business in
Cumberland County, Pennsylvania.
3
10. At all material times, Wilbur acted by and through its actual and/or
apparent agents, servants, workman or employees, including Jeffrey A. Wilbur, who were
acting in the course and scope of their actual and/or apparent employment or agency with
Wilbur.
11. McNaughton believes, and therefore avers, that if Plaintiffs suffered
injuries or damages as a result of the liability imposing conduct claimed in Plaintiffs'
Complaint, which liability imposing conduct is specifically denied, then Plaintiffs'
injuries and damages arose solely out of the liability imposing conduct of Wilbur.
12. If it is determined that Plaintiffs are entitled to recover any or all of the
alleged damages set forth in their Complaint, then Wilbur is solely liable to the Plaintiffs
or, in the alternative, Wilbur is liable over to McNaughton for contribution and/or
indemnification or, in the alternative, Wilbur is jointly and severally liable on Plaintiffs'
causes of action.
4
WHEREFORE, McNaughton demands the following:
1. Judgment in its favor, together with costs;
2. Judgment that, if there is any liability to Plaintiffs, Wilbur is
solely liable to Plaintiffs; and
3. In the event that there is a verdict recovered by Plaintiffs
against McNaughton, that McNaughton may have judgment
over and against Wilbur by way of contribution and/or
indemnification for the amount recovered by Plaintiffs
against McNaughton, together with costs.
Respectfully submitted,
THOMAS, THOMAS & HAFER, LLP
Date: r 2. (z...fr (0):
By:
~(S~
10 J. McNALLY, III, ESQUIRE
DEREK D. BAHL, ESQUIRE
:391085
5
YERWCATIO:N:
I have read the foregoing docume nl and be.rcby affirm tha.t it is true and colrect to
the best of my personal knowlfldge, info~mation and belief. Thill Verification and
statement is made subject to the penaltie.~ of 18 Pa.C.S. 9 4904 :relating to unswoz11
falsification to authorities. I verlfy that lil1 the statements made in the foregmng are true
and cozrect and that false sta.f;eIw:nts may Sllbjeot me to the PCl'lalties of 18 p$.c.S.
~ 4904.
Date: /J-.oJ?.r
~--??
Vicki Shannon
The McNaughton Company
.....
In the Court of Common Pleas
Cumberland Countt, Pennsylvania
Jeffery L Souder
and
Mary Ellen Robinson
Plaintiffs
:
Civil ActIon-Equity and Law
v.
Civil Division
The McNaughton Company . :
dlb/a McNaughton Homes, lnc.
Defendant
No.
: JURY TRIAL DEMANDED
COMPtJUNT
.-. -
AND NOW. -comas the l"1a.\ntifis,. Jeffery Sciuder and MaiY Ellen Robinson by
their legal counsel, Keefer, Wood, Allen & Rahal, UP, ancl pleads the foucwlng
Complaint:
THE PARTIES
1. . The PlalF]tiff, Mary Enen Rob!nson (herein lIJ1obinson"), is: an adult individual wiih
an address of 5845 Spring Tree Court; Enola, Cumberland County,
Pennsylvania.
2. The F'lalntiit, Jeffery L Souder (herein 'Soude!") Is an adult individual with an
address of 5845 SprinJ;J Tree Court; Enola, Cumberland County, Pennsylvania.
3. The McNaughton Company (herein "Defendant') is a Pennsylvania oorporation
with a principal address of 4400 Deer Palh Road, Suite 201; Harrisburg, Dauphin
County, Pennsylvania
4, McNaughton Homes is a fictitious name of The McNaughtol1 Company.
$. McNaughton Homes, Inc. is a fictitious name of ihe McNaughton Company.
VENUE
6. Venue is permitted In Cumberland County tmder Pa.R.C.P. 2179(a).
FACTS
7. Robinson and Souder (l1ereln collectively, "the Plaintiffs") are husband and wife.
8. The Plaintiffs entered Into a contract with Defendant on December 2.8, 1996 to
buy Lot #431n the Westbury development r'the Let"), Enola, Pennsylvania and to
construct a home on the Lot ('!he Sales Agreement"). A true and correct copy of
the Sales Agreement is attached hereto as Exhibjt . A" and made a part hereof as
though fully set forth harein.
S. The Westburf development ("Westbury") oontaills OVillr 100 lots.
10. McNaughton sold aver 12 lots in Westbury In !he first 12 months after the sale of
the first Lot in Wastbwy and in every 12 month period thereafter.
. .
11. On March 4. 1997, McNaughton transferred the Lot to the Plaintiffs in exchange
tor $185,000 purchase price.
12. Pursuant to the contract, McNaughton built a house an the Lot ("the .Residence"
a.nd herein collectively "the Resldencs" and the Lot will be referenced as "the
Real Estate").
13. Plaintiffs purchased thE! Rea.l Estate primarily for personal. family Of household
use.
14. Unbeknownst to Plalntiff$. on the date they 'look possesslon of the Residence,
the shower In the be.1hroom in the master beclroom of the Residence ("the
Showerj was not hooked up to the rest of the plumbing in the Residence.
is. Unbeknownst to Plaintiffs, at the data they took possession of the Residence.
the Resident's Shower water could not be channeled out of the house and into
the sewer system becal.lse the pipe or pipes (herein "lhe Unoonnected Pipe")
leading from the drain of the Shower into a crawl space with a barrier beard
opening in the basement ("the Crawl Space") was unconnected to the rest OT the
Residence's plumbing.
16. Unbeknownst to Plaintiffs, from the date they moved in the hOUSe untU May 23,
20Q4, all of the water from the Shower drained into the Crawl Space.
17. Had McNaf.Jghton disclosed to Plaintiffs that the Shower \i\tas not properly
connected to the Residence's plumbing, they would not have purchased the
Residence.
18. During construction of the ResIdence, McNaughton and/or its agent or agen~.
left the Unoonnected t'ipe, so that all of the Sh.ow~r's water was channeled
dirsot[y into the Crawl Space and not out to the sewer.
19. During construction on the Residence, McNaughton andior Its agent or agents
actively concealsd the plumbing problem by QOvering up the Unconnected Pipe
with insulation.
20. The Crawl Space has no doors to allow entry.
21. McNaughton andrer its agent or agents oommunicated to Plaintiffs that there was
never any reasOn to enter the- brawl spaCe.
22. The punch list prepared by McNaughton dld not include the necessaJY
connection of or repair of the Unconnected ?ipe.
23. McNaughton never warned Plaintiffs about the Unconnected Pipe.
24_ McNaughton represented to Plaintiffs that prior to Plaintiffs moving into the
Residenee, McNaughton's cOnstruction field manager would conduct his own
inspection based on an extensive Check-list, and that during the inspection, the
construolion field manager would review every component of the Residence to
make sure 1t would meet MoNaugntons' standard5 before the Residence would
be turned over to Plaintiffs.'
25. McNaughton represented to PlaintIffs that during the new !lome orientation
meeting, the construction field manager would give them a thorough explanation
of their responsibilities for maintaining the Residence.
26. During the new home crientaiion meetlng, McNa.ughton's construction field
manager advised Plaintiffs not to enter into the Residence's crawl spaces.
27. During the meeting between Plaintiffs and McNaughton's construction field
manager, referred to by McNaughton a.s lhe "new home orienlatlan meeting",
Plaintiffs were not shown the Crawl Space nor were they advised that "they
should look into the Crawl. Space.
28. During the new home orlematlon mealing, McNaughton's construction field
manager misrepresented the condition of the Residence by telling Plaintiffs. that
the Residence was in move-in condition, with all major systems complete, and
Residence was ready to be inhabited by Plaintiffs.
- - -.. .
29. Durlng the new home orientation meeting, McNaughton failed to dl$CIose a
defective condition of the Residence, the Uneonnectad Pipe.
30. During the new hom.. Qrientation meeting, McNaughton's construction field
manager riiisre"presentecthe coni:!~lori of the Residence's plumbing by indicating
to the Plaintiffs an ilhower'$ and tubs were complete.
31. On June 20,1997, the date on which McNauglrton turned over possession of the
R.esidence to Plaintiffs ("the Closingj, M~ghton and/or its agent or agents
represented the condition of the Residenoe ic the Plaintiffs that the Residence
was in move-in oondltlon, with aU major systems complete, and ready to be
inhabited by Plaintiffs.
32. . At the Closing, McNaughton andlor his agent or agents failed to disclose 11
defective condition of the Rssidenos, the Unconnected Pipe.
33. At the Closing, McNaughton and/or Its agent or agent$ did not advise Plaintiffs
about the Unconnected Pipe.
34. Plaintiffs relied on McNaughton's expertise in home construction and did not
inspect the Crawl Space themselves at the time of the neW home orientation
meeting or Closing.
35. Souder entered the Crawl Space for the first Urns on May 23, 2004 because his
water blll was unusllally high. so he wanted to check whether the pipe connected
to the outside faucet Wa$ cracked.
36: When Souder entered the Crawl Space on May ~S, 2004, he found that the pipe
to the outside faucet was nct cracked but he saw a significant amount of black.
mold along the foundatIon wall and on the insulation in the Crawl Space.
37. Souder then pulled down the black, moldy insulalion to try to determine the
source of the mold.
S8. When Soude( pulled down the black. moldy insulation, he saw the Unoonneci..d
Pipe.
39. The Plaintiffs turned on and off the upstairs water faucets and showers and
determined that the Unconnectact Pipe ohanneled the Shower's waste water into
.' - .---..." -- . .--
the Crawl Space.
40. The Unconnected Pipe constitutes a latent defect.
41. The Plalntiffs have not used the Shower since learning that the Unconnected
Pipe channeled waste water into the Crawl Space.
42. Upon further Inspection. the Plaintiffs discovered that the maid from the Crawl
Space had spread from the Crawl Space insulation into the Residence's
basemen!, heat dUcts, floor joists, and carpet.
43. . The mold in the Residence's heat duds have caussd mold to be airborne, and
hence breathed in by the Plaintiffs.
44. The Plaintiffs have expelienced health problems caused by the mold created
from me Shower water draining into the Crawl Space.
45. Water being expelled from the Unconnected Pips compromised the foundation
of the Residence's back yard patio causing the patio to sag.
46. Tne Plaintiffs first contacted McNaughton on or spout May 24, 2Q04, informing it
of the problem.
47. The Plaintiffs and Plairrtfffs' cellosel repeatedly attempted to resolve this matter
from on ar around June 1, 2004 until the filing of this Complaint.
4a. McNaughton has refused to do anything to solve problem.
49. Substantial remediation needs to be complete in order Ie putlhe Residence in
the condition 1t would have been but for the Unconnected Pipe.
eOUNT I
P/;AINTlFFSv, MCNAUGHTON
'BREACH OF CONTRACT
50. All of the foregoing paragraphs are hereby incorporated by referance as though
fuUy set forth herein;
51.. DeUveting the Residence to Piaintiffs at Closing with the Unconnected Pipe
consllMes a material breach of the Sales Agreement.
52. McNaughron's failure to inform Plainiiffs of the existence of the Unconnected
Pipe constitutes a rnatarial breach of the SaJ~ Agreement.
5$. Plaintiffs have fully complied with their obligations under the Sales Agreement.
54. Plalntiffs hEW!> 10$t the benefit of the bargain of the Salss Agreement as the
result of McNaughlon's breaches af the Sales Agreement.
55. As a direct and foreseeable result of McNaughton's material breaches of the
Sates Agreement, the Plaintiffs have suffered and continue to suffer, direct,
tncldental. and consequential damages.
WHERFORE, the Plaintiffs request fue following: (1) a decree in equily
rescindIng the Plaintiffs' purchase of the Real E$tate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs ariSing from
McNaughton's breaches of the Sales Agreement; (2) in the alternative, an order
entering judgment in favor of the Plaintiffs and against McNaughton In the an amount in
. .
excess of the Court's arbitrati1m of limit of $35,000 and (3) together with either of the
foregoing, an order finding McNaughton !lable to the Plaintifr" for coS'".s, and other
appropriate remedies under Pennsylvania law, in an amount to be determined by tile
Court.
COUNT II
PLAfN71F'FS v. MCNAUGHTON
FFiAUDUl..ENT MISREPRESENTATION
56. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
-. .
57. MciNaugton and/or its agent or agentS h1!ld actual at1dtor constructive Knowledge
of the Unconnected Pipe.
58. Despitla it$ actual or constructive knowledge of the problem of the Unconnet;ted
Pipe, McNaughton and/or Its agent or aaents failed to disclose the problem to
Plaintiffs.
59. Instead, MoNaughton by and through its employees and agents made the
following material misrepresentations bo"Ji at the new home orientation meeting
and at the Closing that the (1) plumbing vr...s complete, (2) all home systems
were complera. (3) thi!l entire Residel1ce was in move-in condition, and (4) the
only known defects were contained on the punch-list--when It had actual and/or
constructive knowledge that ~ls was false, with the intent to induce Plaintiffs to
purchase and take possession of the Real Estate.
BO. PlainJ:iffs relied on the misrepresentations concerning the oondition of the
Residence made by McNaughton by and through its employees and agents.
61. Plainlifls' reliance of McNaughton's representations concerning the condition af
the Residence was reasonable.
62. McNaughton's inspection of the worK aftl-Je person who put in t~a Unconnected
Pipe was either omitted Qr performed recklessly. .
63. Mct-'1laughlon or its agent or agents' declsfon to conceal the Unconnected Pipe
with Insulation was alther intentional or reokless.
54. The Plaintiffs would not have purchasecJ and taken possession of the Real
Estate if they had known of the problem with the Unconnected Pipe.
65. The Plaintiffs have suffered injury as a direct result of fraudulent.
.. _..---
misrepresentations by McNaughron.
66. The repairs necessary to remediata the damage caused by the Uncorll'lected
Pipe and the mold it has caused are substantial.
87. Plaintiffs have been deprived the benefit of the bargain because they were
fraudulently inQl.lced to pUTClhase and take possession of the Real Estate.
66. Furt!ler, In making its fiaudulent misrepresentations, McNaughton has acted
olJtrageously and willfully with malIoe and recKless disregard toward the rights of
the Plaintiffs.
WHERFOnE, the Plaintiffs request the following: l'l a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Reat Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from .
McNaughton's fraudulent mlsrepresenlations; (2) In the alternative, an order entering
jUdgment in favor of the Plaintiffs and against McNaughton in the an amcunt in e)(cess
of the Court's arbitratIon of limit of $35,000 and (3) together with either of the foregoing,
an order finding McNaughton Uable to the Plaintiffs for oosts, consequential and punitive
damages, reasonable attorneys' fees, and other appropriate remedies under
Penmrylvania Jaw, in an amount to be determined by the Court.
COUNT III
PLAINTIFFS v.MCNAUGHTON
NEGLIGENT MISREPRESENTATION
69, All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
(70 McNaughton and/or its agent or agents failure to inspect the work of the person
who left the pipe unconnected was negTIganl
j71, The deoision of McNaughton and/or its agent or agents to cover over the
Unconnected Pipe with insulation was negligent.
72. McNaugi1ton negligently misrepresented that: <" the plumbing was complete;
(2) all home Systems wereeol11plete;(3) !he Residence was in -moVe-In.
condition; and (4) the only known defeels Were contained in the punch list Where
these were false, negligent, and material, and were made to induce the Plaintiffs
to purchase and ta.ke possession of the Real Estate.
7:;1. McNaughton's inspec:tion practices and that of lts Iilmployees, agents, and sub-
contractors work are negligent.
- -"- -
74. McNaughton's inspection of the work which left the Shower unconnected to the
plumbing was negligent
75. In reliance on McNaughton's false represenlaticns concerning the condition of
the Residence, Plaintiffs purchased the Real Estate.
76, Had McNaughton Identified the problem of the Unconnected Pipe, Plaintiffs
would not have purchased and taken possession of the Real Eslare.
77. Due to the negligent misrepresentations of McNaughton amlfor Its agent or
agents, !:he Plaintllis have been denied the benefrt of the bargain of their
purohase of ths Residence.
78. Due to the negligent misrepresentations of McNaughton and/or its agent or
agents, the Plaintiffs have been direclly and significantly damaged.
79, McNaughton, in making negligent misrepresentations, have acted with grass
negiigenoe and outrageous!yand willfully with malice and reokless disregard
towards the rights of Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decree In equity
resoinding the Plaintiffs' purchase of the Real Estate, together with restitution by
MQ~aughton to the Plaintiffs covering all money the Plainliffs paid for the Real Estate,
-their lost appreciation on the Real Estate, arii:! all other damages or costs, aifslng from
MoNaughton's negligent misrepresentations; (2) in the aflemative. an order entering
judgment In favor of the Plaintiffs and against McNaughton in lhe an amount in excess
oftheCourl'sarbitration of limit 01$35,000: and(3) together with either ofilie - -
foregoing, an order finding McNaughton lieb!e to the Plaintiffs for oosts, consequential
a.'1d punitive damages. reasonable attorneys' fees, and other remedies under
Pennsylvania law, in an amount to be determined by the Court.
COUNT IV
PLAINTiFFS it. MCNAUG.HTON
INNOCENT MISRE?RESENTATION
80. All of the foregoing paragraphs are hereby ll1oorporated by reference as ihough
fully set forth he rein.
81. McNaughton and/or its agent or agents misrepresented that: (1) the plumbing in
the Residence was complete; (2.) all home systems were complete; (3) the house
was in move-In condition; and (4-) the only defects of the Rasidence ware listed
on the punch list.
82. These representatIons were false, material, and made to induce Plaintiffs to
purchase and take possession of the Real Estate.
83. Acting injustifiab!e and detrimental l'l'lUance on these Inoom~lete. and inaccurate
representations,. Plaintiffs pUrchased the Real Estate.
64. Due to mlsrepresenta.t1ons by McNaughlon, the Plaintiffs have been deprlved of
the benefit of the bargain they were induced to enter In purchasing the Real
Estate.
WHERFORE, thG! Plaintiffs request the following: (1) e. dlilcree in equity
rescinding the Plaintiffs' pUrchase of the Real Estate, together with restitution by
_~cNaUghtonto ~~~~~irltl~S covering .~. money the Plaintiffs paid Icr the Real Estate,
their lost apP1'ecl~oo on the Real Estate. and all other damages or costs, aris[ng from
McNaughton's innacen1 mlsrepresentanons; (2) in the alternative. an order entaring
judgment In favorQf the Plaintiffs and aaalnst McNaughton in the an amount in excess
of the Court's arbitration of Omit of $55,000: and (SYtclgetherWith erther of the
foregoing, an order finding McNaughton riabJe to the Plaintiffs for costs, consequential
and punitive damages, reasonable attorneys' fees, and other remedies under
F'ennsylvanla law. in an amount to be determined by the Dourt.
COUNT V
PLAINTIFFS v. MCNAUGHTON
NEGUGENCE
85. All ohhe foregolng paragraphs am hereby inearporated by reference as thouSh
fully sat forth herein.
86. McNaughton's employee or agent was negligent in installing the plumbing by
leaving the Unconnected Pipe to drain directly into the crawl space rather than to
be channeled out of the Residence by the Residence's plumbing,
67. McNaughton andfor its agent or agents inspection of the work of the person who
left the pipe unconnected was unreasonable and below the standE\(d in the
industry in the local area and elsewhere.
es, McNaughton and/or its agent or agents fa.i1ure to inspect the work of the person
who left the pipe unconnected was unreasonable and below Ihe standard in the
i_ndustry In the local area and elsewhere.
89. McNaughton or its agent or agents decision to cover over the Unconnected Pipe
with insulation was unreasonable and below the standard in t,e Industry in the
local area and elsewhere.
90. McNaughton and/or its a,gent cr agents negligence direetJy caused significant
damages to Plaintiffs.
WFlERFORE,the-P(amti'ffS requesHnelOHCiWing: an order entering Judgment In
favor of the PlaintiffS and against McNaughton In the an amount in excess of the
Court's arbitration of limn of :ji35,OOD a.,d an order finding McNaughton liable to the
. nPlainliffsfor costs, reasonable attorney' fees, consequential and punll:ive damages. and
other appropri~te ramedles under Pennsylvania law, in an amount to be determined by
the Court.
COUNT VI
PLAINTIFFS v. MCNAUGHTON
VIOLAnON OFTH51NTERSTATE LAND SALES ACT
91. All of the foregclng paragraphs are hereby incorporated by reference as though
fullysetforth herein.
92. The Sales Agreement did not obligate !v1cNaughton to complete the oonstruction
of thel Residence within two years.
93. McNaughton and/or its agent or agents employed a device, scheme, and artifice
to defraud Plaintiffs concsming the condition or their Residence both before and
after Closing.
S4. McNaughton obtained Plaintiffs moneyin the form of the purchase price as a
result of untrue statements and omissions of malsrial fact concerning the
condition of the Residence, which were made by McNaughton and/or its a.gent or
agents to mislead PlaJl1tlffs wIth respect to information pertinent to the Real
Estate.
95. MCl'>iaughton and/or its agent or agenl$ engaged in the practice of making
misleading statements concerning the condilion of the Residence, which
operated as a fraud or deceit Upon Plaintiffs.
86. The Interstate Land Sales Act. 42 U.$.CA {i 1701 at sea.("the Interstate Land
Sales-Ac!") enutles Plaintiffs to teeisidoanddamages:
S7. Plaintlffs' rights under the Interstate Land Sales Act are not walvable or voidable.
98. McNaughton and/or its agent or agents Violations of the Interstate land Sales
-Act induced Plaintiffs to purchas-s ana takt,q:'>c$ses$ionot -the Rea! estate. ....
99. McNaughton end/or its agent or agents violations of the Interstate Land Sales
Act resulted in significant damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the PlaIntiffs' purchase of the Reel Estate, together with restItution by
McNaughton to the Plaintiffs covering ell money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and aD O'Jier damages or costs, arisins 1rcm
McNaughton's violatIons of the Interstate Land Sales Act; (2.) in the alternative. an order
entering judgment in favor of the Plaintiffs and against McNaughton in the an amount in
excess or the Court's arbitration of limit of $35,000: and (3) together with either of the
foregoIng, an ordar finding McNaughton nabla to the Plaintiffs for casts, oonsequential
and punitive damages, reasonable attorneys' fees, and other appropriate remedies
under federal andfor state law, in an amount to be determined by the Court.
COUNT vn
PLAINTIFFS v. MCNAUGHTON
VIOLATION OF THE: REAL ESTATE SIiLLER DISCLOSURE.ACT
100, All of the foregoing paragraphs are heraby incorporated by reference as though
fully set forth herein.
101. The foregoing acts and omissions by McNaughton and its agent or agents
violated the Real Estate Seller Dlsclosure Act, sa P.S. 91201 st seq. (1996),
effective GO da.ys after July 2, 1SS6 (repea.lad and relOodlfied effective December
20. 2001 at SS Pa.C.S,A 9 7301 at $sq.).
102. McNaughton provided a limited warranty on the Residence.
103, Forthe items Included in the runiled warranty, McNaughton provided coverage
ior the lesser of the following: one year or the martufacturer's warranty.
1M. As McNaughton did not provide a one-year or greater warranty on the entire
..-.'------ -------...- - --.-...-------~--- .- -_.._,____ ._...._ -----,_..------'-__.-0.. ."_
Residence, McNaughton was required to provide PlaintIffs with a disclosure
statement speoified by the Real Estate Seller Disclosure Act.
105. The disclosure specified by the Real Estate Seller Dlsolosure Act reqUired the
seller to state whether it was -aware of any leaks, backups or other problems
relating 'to any of the plumbIng",
10S. McNaughton failed to provide Plaintiffs with a disclosure statement meeting the
requirements of the Real Estate Seller Disolosure Am.
107. Section 1032 of the Real Estate Disolosure fI.ct. 68 P.S. 2i032, provides for a
prlvats cause of action fer damages against any person who violates the act.
108. MoNaughton's failure to provide tha req~ired Disclosure Statement under the
Real Estate Disclosure Act resulted in substantial damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: an order entering jud9roent in
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for Qosts,consaquential and punitive damages, and other appropriate
remedies undar Pennsylvania law. in an amount to be determined by the Court.
COUNT Viii
PLAiNTiFFS v. MCNAUGHTON
VIOLATION OF THE UNFAIR TRADE PRACTICES AND
CONSUMER PROTECTION LAW
109. All of the foregoIng paragraphs are hereby Incorporated by reference as though
fully set forth herein.
110. The Plaintiffs are consumers within the meaning of the Unfair Trade Practioes
and Consumer Law ("UTPCPL") 73 Pa.C.SA. !} 201-' st seq.
- u 111.u MoNal.lgbtoo tails_d ~PlO'(lde th"'f!'!quJred DJsclosureStat~_I}1~~ un;ier theR,ea,l __ .
Estate Dise]osure Act.
112. The failure to provide a Disolosure Statement was intended to mislead the
Plaintiffs about the completeness of plumbing in the Residence.
113. McNaughton and/or its agent or agents oonstruction of the Residence's plumbing
was of a nature and qualIty inferior to or below the standard agreed to in writing.
114. McNaughton andfor Us agent or agents mlsrepresentation$ that: (1) the
plumbing was oompJate: (2) all home systems were oomplete; (3) the Residence
was in move.In oondltion: and (4) the only known defects were contalned in the
punch list were false, negligent, and matenal, and Wars made to induce the
Plaintiffs to purchase and take possession of the !ie'll ~state.
115. MoNaughton and/or its agent or agents misrepresentaTIon were fra.udulent and
deceptive, which created a likelihood of confusion and misunderstandIng by
Plaintiffs about the condItion of the Residence.
116. As a resuLt of McNaughtoh and/or its agant or agents misrepresentation
concerning the condffion of the Residence, the Plaintiffs have directly SUffered
damages.
117. Hael the Disclosure Statement for the Property Identified the plumbing problem,
the Plaintiffs would have deoided not te p(lrchase and take possession of the
Real Estate.
118. Had the Plaintiffs known the true oondlllon of the Residence, they would have
not purchased and taken possessIon of the Real Estate
119. Necessary repairs will requIre ve/'y' substantial cost.
12o.-As-a result of the fOregoing unfaifol' deceptiVe aasor practices, the Plaintiffs are
entitled, by virtue of the provisIons of lIie UT?CPL, to rec;over the followIng:
[a)
actual damagse to fully repair the damages resulting from the
J,l,nq9rl!l~t~. piP!/.: _ u U _. . u __ __ _'.. _ ___ _ u .
(b) treble damages; and
(0) Reasonable counsel fees and costs.
WHERFORE. the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in excess of thlil
Court's arbitration of limit of $35,000 together with an order finding McNaughton liable
to the Plaintiffs for costs, reasonable attomeys' fees, treble damages, and other
appropriate remedies under Penl1sylvania, law, i('l an amount to be determined by the
Court.
COUNT IX
P!.AlNTlFFS v. MCNAUGHTON
BREACH OF IMPLIED WARRANTY OF HABITABILITY
121. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
122. From the time 01 the Cioslng until present, the Residence is not fully Tl.!notional
and habitable because Plalntiffs cannoluse the Shower.
123.. MoNaughton has breached Plalrrtiffs' implied warranty of habitability.
124. McNaughton's breach of the implied warranty of habitablllty has resulted in
signIficant damages to Plaintiffs.
WHERFORE, the F'laintiffs request the iollowing: an order enteling judgment in
favor of the Plaintiffs and against McNaughton In the an amount in excess of the
-- -Court's arbitration of limit or $35.000 and an order finding McN?ughtan Iiabl~ to the
Pla.intiffs for costs, punitive damages, consequential damages and ather appropriate
remedies under Pennsylvania law, in an amount to be determined by the Court
- . KEE.E~-,-'ftQ..O_~,_ALLEl'i.o! !'l~~!:l~.
Dated: &-"'1...0')'
By; ~,/~..;..
Elizabeth J. Goldstein, Esquire
PA 1.0. # 73779
Attorneys for Plaintiffs
415 Fallowfleld Road, Suite 301
Camp HlII, PA 17011
717-612-5600
EXHIBIT "A"
~u'"',.. .-"'" ,,::.'-..."'''~ . ['-'t> /';,u~~l r,.n<;"J;Ll..~~l" . .',
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/lf7;;'"J1tJI'.V,r.-r~ cre;vr - " .
. .
-PA_ LICENSED BROKER FA. LICENSED :SR.OK2:R~'
This A.roemcnt m~. !l:lls .;t 8' hi'-
1!JV! Je~
]
1. P &IN ClP ALS B01"'....
(r,,-,[ding o.t '0..,
herein<<rtor calle.d. Sttl1~a.nd
(residing at
here:inaft;: caUc:d. Buyer. .
~. p&OPERn: Sella- bcrolly ~gree.s to ,.n lUId oonvey to 1lU)'0!. who ho"'!>y "111"-" t<>'PL.l""'"-se: AU THAT CERTA1N !..cL or pi",.
ofgr. dllll,hb1l!1din 'M imp'o.. ""-lIth,,,am.,., ,ifany,know : ""'r~ 45 We;r.:;r::su~
~ "7<u C; '. _ .
3. ZONING: Zonins C....ifloau<>n
FaJl~r. of thisAgr..= to "On~allll.b. zoning olwlfioatlon =pt ill "",,,. wh41ro tho propotty (or .ach par<el thereof, if SU~Qivi<l.b1.)
is zoood sollllY orprlmarily 10 pmnit slngl...rlUlllly dwellIng.; Iihall,;",dl'l thiI Asr"""'''''t voi~~ble at the option of tho Buyer and if ""idea
depe.its ,cnd.red by tho Buyu shall b~ fS\\ll'ned \0 tb. .BuY~I\hout 11 roqulr;;lJI~~urt, ~c:tioo." . .,.
~. T.ER.MS: (ll) l'urehase Frie. ffY'I~ cz::r.t.~,ej;;.tJ _r:-.ff~ -;~~ ~~.. .
:-,~ CS I.P~~.-
to b. poi:! by <be llu)';r Il.l follows: .. .. ..... _.'. .' ... , ...... _.' . .
rb) l)E~o.atrQzdc:~CitkO.NI;lt..C:ll~thoQ.pjUS::QrtlliJ .r'.. 1";' ;'1..:.' .,' .IQ.:l$C;'.__
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tr~la&e-~edo.ltDfherOn=th,= daycr . 19--=-- ....
to:) MbITIQrilALDEPOS.lT 1Ii1olC on ipC bd'att; cbc __ :. I:' ... <.. ".,
a,.ililr .1~__:........_..._. .s:
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MAXIMUM INmAL '-0 . .., _
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m 0qdJr1l" Ihh;~s rrou- AND vom, a whidr.11n=, an mallItt p8id. 011 B:aJUbl will bi: ~ illl S~-er lIS ~gidAud ~F'. $tIbj~ La Ul=; R.u'l:!i ami
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(iD lu~Ill::GE''II'IiU=1lOt.i= to tbcBUJUbrwSldlm'dm:lJrtnr: UliiA~HUU.J..HDYOtC, uu ~LSon IU'Id c.oMh:lEenC1~dd rutin tAi5h,~tn;h.
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VERIFIQ..A..TION
I, JEFFERY L. SODDER, sta:'-.e subj..ot to the pena,lties of the Orim.es Oode io.
18 Pa.. a.S.A. s 4904 relating to un,swo:rn. falsification to'authorities that the facts
SlOt fcrtn hex-em are true and. C"..nett to the best of my knowledge, infOrI:lJ.ll.tion and
belief.
Date:
os
~ I-M-
~:aYL. SOUDER
-----~ --~-
-- ~-~- - -- --- - -----~--~ .----
- - -~------~-----
VER.IFrc.4..TION
1, MA:B.Y ELLEN .:aOBlNSON, state subject to the penalties of the Crimes
Code in 18 Pa. C.B.A. ~ 4904 relating to 'tlIl.S\'YQm falsification to D-utho:dties that the
facts set forth herein axe true <Ul.o, correct to the best. of my kno'lvledge, hIiO=atiOll
Blld belief.
Date: (J~ 19:}O.6'
I I
V;Y;&,;/"tM- b.~.~,
W..R.yEJi:'.,LEN ROBINSON
---- -- ------..-----
--------------- --~---~-~-- -----
CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy of the same in the United States Mail, first class, postage prepaid, to
the following:
Elizabeth 1. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfie1d Road
Suite 301
Camp Hill, PA 17011
Date: I if,1 Gi-f) D~
VL
Ki berly J. Hain
Legal Secretary to J. J. McNally, Esq.
CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy of the same in the United States Mail, first class, postage prepaid, to
the following:
Elizabeth J. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfie1d Road
Suite 301
Camp Hill, PA 17011
J\3\Cl~
Date: v
n J. McNally, Esq.
v-."r
.-\
- !.', . ,~.-.
,
"
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John J. McNally, III, Esquire
Derek D. Bah1, Esquire
THOMAS, THOMAS & HAFER, LLP
Identification Nos.: 52661/87851
305 N. Front Street
P.O. Box 999
Harrisburg, PAl 7108-0999
Attorneys for Defendant
JEFFREY L. SOUDER and MARY
ELLEN ROBINSON,
Plaintiffs
v.
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND COUNTY, PENNSYL VANIA
: CIVIL ACTION
: No. 05-4091 Civil Term
THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON HOMES, INC.
Defendant : JURY TRIAL DEMANDED
PRAECIPE TO SUBSTITUTE EXHIBIT
TO THE PROTHONOTARY:
Please substitute the attached Complaint for Exhibit A attached to Defendant's
Preliminary Objections to Plaintiffs' Complaint that was previously filed in this matter on
September 6, 2005.
By:
DATE: I orb ( 0\
Respectfully submitted,
OMAS, THOMAS & HAFER, LLP
($M
D rekD. Bah1,
I.D.#87851
305 North Front Street
P.O. Box 999
Harrisburg, P A 17108-0999
(717) 237-7157
Attorneys for Defendant
08/18/05 THU 14:19 FAX 7377062
_1._- .__...
INSlrnANCE & SlmETY INC
~002
In the Court of Common Pleas
Cumberland County, Pennsylvanla
Jeffery L. Souder
and
Mary Ellen Robinson
Plaintiffs
Civil Action-Equity and Law
v.
Civil Division
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
No. OS" - J.fD9 r
CI~; l 'T~
NO'ttCE
YOU HAVE BEEN SUED IN COURT. If you wish tQ defend against the claims set forth in the
fonowing pages, you lJ1U&t take action within twenty (20) days after this Complaint and Notice sre
served, by entering a written app= penonall y or by Ilrtomcy Il1dfiliDg in writing with the Court
your defenses or objections to the claimli $et forth against you. Yon ate warned that if YOI1 fail to do
50 the case may proeeed without you and a judgment may be entered agllinst you by the Court witham
fUrther I1Olioe for aIlY money claimed in the CompJ.ai.nt or for IlllY other claim or relief requested by
the PlaiDtiff. You may lose moue)' or property or other rights important to you.
YOU SHOULD TAKE THIS l'APER TO Y01lR LA W'YEB. AT ONCE. IF YOU DO NOT
HA \IE A LAwYER. GO TO OR 'l'EI..a'HONE TBE OffiCE SEr FORre BELOW. TBlS
OFFICE CAN PROVIDE YOU WIrHINFORMATION ABOUT HIRING A LA WYEa.
IF yOU CA?>1NOT AFFORD TO HIRE ALA WYER. nrrs OffiCE MAY BE ABLE TO
PROVIDE YOU w:rm:lNFO~nON ABOUT AGENCIES THAT MAY OFFER LEGAL
SER'\lICES TO ELIGIBLE PERSONS AT A REDUCED FEE OR NOT FEE.
Cumberland County Bar AsllOciation
2 liberty Avenue
Carlisle, P A 17013
(717) 249-3166
88S'~
ZOO'd 8l8-1
...~~;.~ ~~~,~.:t ~'";;'n'-,. ",.~ ~~~..,?i;:f'~
~~.._~....... "........~ ~ . I _.~.~ v....,. .....:..:
111 r';.,:'t:"'=,i.;~:.J ,~~!~:;:,,'~r:1.1 ~~;:q -:;!'~:. ')~ :l;~ ~1~.11~
:'!'~"'i ~i~d ~~ ~4 ~~r..:--1 r-~;"" <t: ~:~j.c~~~ F~
,-:.ti{~~;;1~~
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~~ nvo,:oo .001-ll-.0
08/18/05 TeU 14:19 FAX 7377062
_. _.L-___.__.
INSlmANCE & SURETY INC
I4i 003
In the Court of Common Pleas
Cumberland County, Pennsylvania
Jeffery L. Souder
and
Mary Ellen RObinson
Plaintiffs
Civil Action-EquIty and Law
v.
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
Civil Division
No.
JURY TRIAL DEMAND~D
COMPLAINT
AND NOW, oomas the Plaintiffs, Jeffery Souder and MaiY Ellen Robinson by
their legal counsel, Keefer, Wood, Allen & Rahal. lLP, and pleads the following
Complaint:
THE PARTIES
1. . The Plaintiff, Mary Ellen Robinson (herein "Robinson"), is an adult individual with
an address of 5845 Spring Tree Court; Encla, Cumberland County,
Pennsylvania.
2. The Plaintiff, Jeffery L Souder (herein "Souder") Is an adult individual with an
address of 5845 Spring Tree Court; Enola, Cumberland County, Pennsylvania.
3. The McNaughton Company (herein "Defendant') is a Pennsylvania corporation
with a principal address of 4400 Deer Path Road, Suite 201; Harrisburg, Dauphin
County, Pennsylvania
m-,
SOO'd Sll-l
-MD~; nVI~'!o sool-il-so
08/18/05 THlT 14:20 FAX 1317062
I
,.
INSlmANCE & SlrnETY INC
IaJ 004
4. McNaughton Homes is a fictitious name of The McNaughton Company.
5. McNaughton Homes, Ine. is a fictitious nam~ of Ihe McNaughton Company.
VENUE
6, Venue is permitted In Cumberland County ~nder PaRC.F'. 2179(a).
FACTS
7. Robinson and Souder (herein collectively, ''the Plaintiffs") are husband and wife.
8. The Plaintiffs enterad Into a contract with Defendant on December 28, 1996 to
buy Lot #43 in the Westbury development ("the Lot'), Eno/a, Pennsylvania and to
construct a home on the Lot ("the Sales Agreement"). A true and correot copy of
the Sales Agreement is attached hereto as Exhibit "N and made a part herem as
though fully set forth herein.
9. The We5tbury development ("Westbury") contains over 100 lots.
10. McNaughton sold over 12 Jots in Westbury In the first 12 months after the sale of
the first Lot in Westbury and in every 12 month period thereafter.
11. On March 4,1997, McNaughton transferred the Lot to the Plaintiffs in exchange
for $185,000 purchase price.
12. Pursuant to the oontract, McNaughton built a house an the Lot ("the Residence"
and herein collectively "the Residence" and the Lot will be referenced as ''the
Rea! Estate").
13. Plaintiffs purchased the Real Estate primarily for personal. family or household
use.
, 4. UnbeknOWnst to Plaintiffs. on the date they took possession of the Residence,
the shower in the bWhroom in the master bedroom of the Residence ("the
Shower'') was not hooked up to the rest of the plumbing in the Residence.
1 S. Unbeknownst to Plaintiffs, at the date they took p05session of the Residence.
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the Resident's Shower water oould not be channeled out of the house and into
the sewer system because the pipe or pipes (herein "the Unconnected Pipe")
leading from the draln of the Shower into a crawl space with a barrier board
opening In the basement ("the Crawl Space") was unconnected to the rest of the
Residence's plumbing.
16. Unbeknownst to Plaintiffs. from the date they moved in the house until May 23,
2004, all of the water frcm the Shower drained into the Crawl Space.
17. Had McNaughton disclosed to Plaintlffs that the Shower was not property
connected to the Residence's plumbing, they would not have purchased the
Residence.
18. During construction of the Residence, McNaughton and/or its agent or agents,
left the Unconnected Flips, so that all of the Shower's water was channeled
directly Into the Crawl Space and not out to the sewer.
19. During construction on the Residence, McNaughton and/or Its agent or aQents
actively concealed the plumbing problem by covering up the Unconnected Pipe
with insulation.
20. The Crawl Space has no deors to allow entry.
21. MoNaughton and/or its agent or agents communicated to Plalntiffs that there was
never BI1Y reason to enter the Crawl Space.
22. The punch list prepared by McNaughton did not include the necessary
connection of or repair of the Unconnected Pipe.
23. McNaughton neverwamed Plaintiffs about the Unconnected Pipe,
24. McNaughton represented to Plaintiffs that prior to Plaintiffs moving into the
Residence, McNaughton's construction field manager would oonduct his own
inspaotlon based on an extensive check-list, and that during the inspection. the
construction field manager would review eVllry component of the Residence to
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make sure It would meel MoNaughtons' standards before the Residence would
be turned over to Plaintiffs.
25. McNaughton represented to PlaintIffs that during the new home orientation
meeting, the construction nerd manager would give them a thorough explanation
of their responsibilities for maintaining the Residence.
26. During the new home orientation meeting, McNaughton's construction field
manager advised Plaintiffs not to enter into the Residence's crawl spaces.
2.7. During the meeting between Plalntlffs and McNaughton's construction field
manager, referred to by McNaughton as the knew home orientation meeting",
Plaintiffs were not shown the Crawl Space nor were they advised that they
should look into the Crawl Space.
28. During the new hl;lme orientation maeting, McNaughton's construction field
manager misrepresented the condition of the Residence by telling Plaintiffs that
the Residence was in move-in condition, with all major systems complete, and
Flesidence was ready to be inhabited by Plaintiffs.
29. During the new home orientation meeting, McNaughton failed to disclose a
defective condlllon of the Residence, the Unconnected Pipe.
30. During the new home orientation meeting, MoNaughton's construction field
manager misrepresented the condition of the Residence's plumbing by indicating
to the Plalntlffs all shcwel'$ and tubs were complete.
:ill. On June 20, 1997, the date on which McNaughton turned over possession of the
Residence to Plaintiffs ("the Closingj, McNaughton and/or its agent or agents
reprasented the eondition of the Residence to the Plaintiffs that the Residence
was in move-in condition, with all major systems complete, ancl ready to be
inhabited by Plaintiffs.
32. . At the Closing. McNaughton and/or his agent or agents failed to disclcse a
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defective condition of the Residence, the Unconnected Pipe.
33. At the Closing, McNaughton and/or Its agent or agents did not advise Plaintiffs
about the Unconnected Pipe.
34. Plaintiffs relied on McNaughton's expartise in home construction and did not
inspect the Crawl Space themselves at the time of the new home orientation
mElating or Closing.
35. Souder entered the Crawl Space for the first time on May 2S, 2004 because his
water bi11 was unusually high, so he wanted 10 check Whether the pipe connected
to the outside faucet was cracked.
S6. When Souder entered the Crawl Space on May .23, 2004, he found that the pipe
to the outside faucet was not cracked but hGJ saw a significant amount of black
mold along the foundation wall and on the insulation in the Crawl Space.
37. Souder then pulled down the black, moldy insulation to try to determine the
source of the mold.
36. When Souder pulled down the black, moldy insulation, he saw the Ul'lconnected
Pipe.
39. The Plaintiffs turned on and aft fue upstairs water faucets and showers and
determined that the Unoonnectacl Pipe channeled the Shower's waste water into
the Crawl Space.
40. The Unconnected Pipe oonstitutes a latent defect.
41. The Plaintiffs have not used the Shower since learning that the Unconnected
Pipe channeled waste water into the Crawl Space.
42. Upon further inspection, the Plaintiffs discovered that the mold from the Crawl
Space had spread from the Crawl Space insulation into the Residence's
basemenl, heat ducts, floor joists, and carpet.
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43. The mold in the Residenoe's heat ducts have caused mold to be airborne, and
hence breathed In by the Plaintiffs.
44. The Plaintiffs have experienced health problems caused by the mold created
from the Shower water draining into the Crawl Space.
45. Water being expelled from tile Unconnected Pipe compromised the foundation
of the Residence's back yard patio causing the patio to sag,
46. The Plaintiffs first contacted McNaughton on or about May 24, 2004, informing IT
of the problem.
47. The Plaintiffs and Plaintiffs' counsel repeatedly attempted to resolve this matter
from on or around June 1, 2004 until the fIlIng of this Complaint.
48. McNaughton has refused to do anything to solve problem.
49. Substantial remediation needs to be complete in order te put the Residence in
the condition it would have been but for the Unconnected Pipe.
COUNT 1
PUlINTlFFS v. MCNAUGHTON
BREACH OF CONTRACT
~~,\
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50. All of the foregoing paragrephs are hereby incorporatad by reference as though
fully set forth herein.
51. De[lvering the ResIdence to Plaintiffs at Closing with the Unconnected Pipe
constitutes a material breach of the Sales Agreement.
52. McNaughmn's failure to Inform Plaintiffs of the exIstence of the Unconnected
Pipe c:on$titutes a material breach of the BalM Agraernent.
5$. Plaintiffs have fully complied with their obligations under the Sales Agreement.
54. Plaintiff$ have lost the benefit of the bargain of the Sales Agreement as the
result of McNaughton's breaches of the Sales Agreement.
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55. As a direct and foreseeable result of McNaughton's material breaches of the
Sales Agreement, the Plaintiffs have suffered and continue to suffer. direct.
Incidental, and consequential damages.
WHERFORE. the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
MoNaughton to '!he Plaintiffs covering all money the Plaintiffs paid for the Rea] Estate,
their lost appreciation on the Real Estate, and all other damages or costs arising from
McNaughton's brsaehs$ of the Salas Agreement; (2) in the alternative, an order
entering Judgment in favor of the Plaintiffs and against McNaughton in the an amount in
excess of the Court's arbitration of limit of $35,000 and (3) together with either of the
foregoing, an order finding McNaughton liable to the PlainUffs for costs. and other
appropriate remedies under Pennsylvania law, in an amount to be determined by the
Court.
COUNT \I
PLAINTIFFS v. MCNAUGHTON
FRAUDUU=NT MISREPRESENTATION
56. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
57. MeNaugtcn and/or its agent or agents had actual and/or constructive knowledge
of the Unconnected Pipe.
68. Despite its actual or constructive knowledge of the problem of the Unconnected
Pipe, McNaughton and/or its agent or agents failed to disclose the problem to
Plaintiffs.
59. Instead, McNaughton by and through its employees and agents made the
following material misrepresentations both at the new home orientation meeting
and at1he Closing that the (1) plumbing was complete, (2) atl home systems
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were complete, (3) the entire Residence was in move-in condition, and (4) the
only known defects were contained on the punch-Ilst.-when It had actual and/or
constructive knowledge that this was falsll, with the intent to induce PlaIntiffs to
purchase and take possession of the Real Estate.
60. Plaintiffs relied on the misrepresentations concerning the condition of the
Residence made by McNaughton by and through its employees and agents.
61 , Plaintiffs' reliance of McNaughton's representations concerning the condition of
the Residence was reasonable.
62. McNaughton's inspection of the work of the person who put in the Unconnected
Pipe was either omitted or performed recklessly.
63. McNaughton or its agent or agents' decision to conceal the Unconnected Pipe
with Insulation was either intentional or rec:ldess.
84. The Plaintiffs would not have purchased and taken possession of the Real
Estate if they had known of the problem with the Unconnected Pipe.
65. The Plaintiffs have suffered injury as a direct result of fraudulent
misrepresentations by McNaughton.
66. The repairs necsssary to remediate the damage caused by the Unconnected
Pipe and the mold it has caueed are substantial.
S7. Plaintiffs have been deprived the benefit of the bargain because they were
fraudulently induced to purchase and take possession of the Real estate.
68. Further, In making Its fraudulent misrepresentations, MoNaughton has acted
outrageously and willfully with malice and reckless disresard toward the rights of
the Plaintiffs.
WHERFORE, the Plaintifft request the foJlowing: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Esta.te, together with restitution by
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McNaughton to the PI~intiffs covering all money tha Plaintiffs paid for the Real Estate,
their lost appreciation an the Real Estate, and all other damages or costs, arising fram
McNaughton's fraudulent mlsrepresentatlons; (2) In the alternative, an order entering
jUdgment in favor of the Plaintiffs ~nd against McNaughton in the an amount in excess
of the Court's arbitration of limit of $35,000 and (3) together with either of the foregoing.
an order finding McNaughton lI~ble to the PI~intiffs for casts, consequential rand punitive
damages, reasonabla attomeys' fees, and other appropriate remedies under
Pennsylvania law, in an amount to be determined by the Court
6S,
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72.
73.
74.
COUNT 1II
PLAINTIFFS v. MCNAUGHTON
NEGI.IGENT MISREPRESENTATION
All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
McNaughton and/or its agent or agents failure to Inspect the work of the person
who laft the pipe unconnected was negligent
The deoision of McNaughton and/or its agent or agents 10 cover over the
Unconnected Pipe with insulation was negligent.
McNaughton negligently misrepresented that: (1) the plumbing was complete;
(2) all home systems were complete; (3) the Residenoe was in move-in
condition; and (4) the onlY known defects were contained in the punch list where
these were false, negligent, and material, and were made to induce the Plaintiffs
to purohase and take possession of the l=Ieal Estate.
McNaughton's inspection practices and that of its employees, agents, and sub-
contractors work are negligent.
McNaughton's inspeotion of the work which left the Shower unconnected to the
plumbing was negligent.
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75. In reliance on McNaughton's false representations concemlng the condItion of
the Residence, Plaintiffs purchased the Real Estate.
76, Had McNaughton Identified the problem of the Unconnected Pipe. Plaintiffs
would not have purchased and taken possession of the lieel Estale.
77. Due to the negligent misrepresentations of McNaughton and/or tts agent or
agents, the Plaintiffs have been denied the benefit of the bargain of their
purohase of the Residence.
78. Due to the negligent misrepresentattons of McNaughton and/or its agent or
agents, the Plaintiffs have been directly and significantly damaged.
79. McNaughton, in maklng negligent mlsrepresentations, have acted with gross
negligence and outrageously and willfully with malice and reckless disregard
towards the rights of Plaintiffs.
WHERFORE, the Plaintiffs request the following: (1) a decrlile in equity
rescinding the PlaintiffS' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real E:state, and all other damages or costs, arising from
McNaughton's negligent misrepresentations; (2) in the alternative. an order entering
judgment in favor of tl1e Pla.intiffs and against McNaughton in the an amount In excess
of the Courfs arbitration of limit of $35,000: and (3) together wilh either of the
foregoing, an order finding McNaughton liable to the Plaintiffs for costs, c:onsequential
and punitive damages. reasonable attorneys' fess. and other rEOmedies under
Pennsylvania law, in an amount to be determined by the Court.
COUNT IV
PLAINTiFFS v. MCNAUGHTON
INNOCENT MISREPRESENTATION
80. All of the foregoing paragraphs are hereby Incorporated by reference as though
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fully Set forth herein.
81. McNaughton and/or its agent or agents miSrepreslinted that: (1) the plumbing in
the Residence was complete; (2.) all home systems were complete; (3) the house
was in move-In condition; and (4) the oniy defects of the Residence were listed
on the punch list.
82. These representations were false, material, and made to induce Plaintiffs to
purchase and take possession of the Real Estate.
83. Acting in justifiacle and datrirnental reliance on these inoomplete, and inaocurate
representations, Plalntiffs purchased the Real Estate.
84. Due to mlsrepresantatlons by McNaughton, the Plaintiffs have been deprived of
the benefll of the bargain they were induced to enter in purchasing the Real
Estate.
WHERFORE, the Plaintiffs request the following: (1) a dli1cree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs covering all money the Plaintiffs paid for the R.eal Estate,
their lost appreoJaiion on the Real Estate, and all other damages or costs, atising from
McNaughton's innocent misrepresentations; (2) in the alternative. an order entering
[udgment In favor of the Plaintiffs and against McNaughton in the an amount in excess
of the Court's arbitration of limit of $35,000: and (S) together with either of the
foregoing. an order finding McNaughton liable to the Plaintiffs for costs, consequential
and punitive damages. reasonable attomeys' fees, and other remedies under
Pennsylvania law. in an amount to be determined by the Court.
COUNT V
PLAINTIFFS v. MCNAUGHTON
NEGUGENCE
85. All of the foregoing paragraphs are hereby incorporated by reference as though
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fully set forth herein.
86. McNaughton's employee or agent was negligent in installing the plumbing by
leaving the Unconnected Pipe to drain directly into the crawl space rather than to
be channeled out of the Residence by the ~esjdence's plurnblng,
67. McNaughton and/or its agent or agents inspection of the work of the person who
left the pipe unconnected was unreasonable and below the standard in the
industry in the local area and elsewhere.
8S. McNaughton and/or its agent or agents failure to inspaef the work of the person
who left the pipe unconnected was unreasonable and below tha standard in the
industry In the local area and elsewhere.
89. McNaughton or its agent or agents decision to cover over the Unoonnected Pipe
with insulatiol'l was unree.~onable and below the standard In the Industry in the
local area and elsewhere.
90. McNaughton and/or its agent or agents negligencs directly caused significant
damages to Plaintiffs .
WHERFORE, the Plaintiffs request the following: an order entering judgment In
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for costs, reasonable attorney' fees, consequential and punllive damages. and
other appropriate remedies under Pennsylvania law, in an amount to be determined by
the Court.
COUNT VI
PLAINTIFFS v. MCNAUGHTON
V10LA110N OF TH5lNTERSTATE LAND SAl.ES ACT
91. All of the foregoing paragraphs are hereby incorporated by reference as though
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fully set forth herein.
92. The Sales Agreement did not obligate McNaughton to complete the construction
of the Residence within two years.
93. McNaughton and/or its agent or agents employed a device, scheme, and artifice
to defraud Plaintiffs concerning the condition of their Residence both before and
after Closing.
94. McNaughton obtained Plaintiffs money in the form of the purchase price as a
result of untrue statements and omissions of material fact conceming the
condition of the Residence, which were made by McNaughton and/or its agent or
agents to mislead Plaintiffs with respect to information pertinent to the Real
Estate.
95, McNaughton and/or its agent or agents engaged in the pracllce of making
misleading statements concerning the condition of the Residence. which
operated as a fraud or deceit upon Plaintiffs.
96. Thelnterstata Land Sales Act, 42 U.S.C.A. !i 1701 et seo.("the Interstate Land
Salea Acf') entitles Plaintiffs to recision and damages.
97. Plalntiffs' rights under the Interstate Land Sales Act are not walvable or voidable,
sa. McNaughton and/or its agent or agents violations of the Interstate Land Sales
Act induced Plaintiffs to purchase and take possession of the Re<il Estate.
99. McNaughton and/or its agent or agents violations of the Interstate Land Sales
Act resulted in significant damages to Plaintiffs.
WHERF'ORE, the Plaintiffs request the following: (1) a decree in equity
rescinding the Plaintiffs' purchase of the Real Estate, together with restitution by
McNaughton to the Plaintiffs oovering all money the Plaintiffs paid for the Real Estate,
their lost appreciation on the Real Estate, and all other damages or costs, arising from
McNaughton's violations of the Inlerstale Land Sales Act; (2) in the altemative. an order
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entering judgment in favcr of the Plaintiffs and against McNaughton in the an amount in
excess of the Court's arbitration of limit of $35,000: and {3} together with either of the
-foregoing, an order finding McNaughton liable to the Plaintiffs for casts, oonsequentiai
and punitive damages, reasonable attomeys' fees, and other appropriate remedies
under federal and/or state law, in an amount to be determined by the Court,
COUNT VII
PLAINTIFFS v. MCNAUGHTON
VIOLATION OF THE REAL ESTATE SELLER DISCLOSU~E ACT
100, All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
101. The foregoing acts and ori'iissions by McNaughton and its agent or agents
violated the Real Estate Seller Disclosure Act, S8 P.S. !i 1201 at saq. (1996),
effective SO days after July 2. 1996 (repea.led and recodified effective Oeoember
20. 2001 at 68 Pa.C.S,A !i 7301 et seq.).
102. McNalJghton provided a limited warranty on the Residence.
103, For the items Included in the limited warranty, McNaughton provided ooverage
for the lesser of the following: one year orthe manufacturer's warranty.
104. As McNaughton did not provide a one-year or greater warranty on the entire
Residence. McNaughton was required to provide Plaintiffs with a disclosure
statement speoified by the Real Estate Seller Disclosure Act.
, 05. The disclosure specified by the Real Estate Seller Disclosure Act required the
seller to state whether it was "aware of any laaks, backups or other problems
relating to any of the plumbing',
106_ McNaughton failed to provide Plaintiffs with a disclosure statement meeting the
requirements of the Real Estate Seller Disolosure Act.
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107. Section 1032 of the Real Estate Disclosure Act, 68 P.S. ~ 1032, provides for a
private cause of action for damages against any person who violates the act.
108. McNaughton's failure to provide the required Disclosure Statement under the
Real Estate Disclosure Act resulted in substantial damages to Plaintiffs.
WHERFORE, the Plaintiffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in exoess of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for costs. consequential and punitive damages, and other appropriate
remedies undQr Pennsylvania law, in an amount to be determined by the Court.
COUNT VIII
PLAINTIFFS v. MCNAUGHTON
VIOLATION OF THE UNFAIR TRADE PRACTICES AND
CONSUMER PROTECTION LAW
109. All of the foregoing paragraphs are hereby Incorporated by reference as though
fully set forth herein.
11 Q. The Plaintiffs are consumers within the meaning of the Unfair Trade Practices
and Oonsumer Law ("UTPCPL') 73 Pa.C.S.A. ~ 201-1 st seq.
111. McNaugtrton failed to provide the required Disdosure Statement under the Real
Estate Disclosure Act.
112. The failure to provide a Disclosure Statement was intended to mislead the
Plaintiffs about the completeness of plumbing in the Residence.
113. McNaughton andlor its agent or agents oonstruction of the Residence's plumbing
was of a nature and quality inferior to or below the standard agreed to in wrl!lng.
114. McNaughton and/or Its agent or agents misrepresentations that: (1) the
plumbing was complete; (2) all home systems were complete; (3) the Residence
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was in move-In condition: and (4) the only known defects were contained in the
punch list were false, negligent, and material, and were made to induce the
Flaintiffs to purchase and tak.. possession of the Rei:\1 Estate.
115. McNaughton and/or its agent or agents misrepresentation were fraudulent and
deceptive, which created a likelihood of confusion and misunderstanding by
Plaintiffs about the condition of the Residence.
116. As a result of McNaughtoh and/or its agent or agents misrepresentation
concerning the cgndition of the Residence, the Plaintiffs have directly suffered
damages.
117. Hael the Disclosure Statement for the Property identified the plumbing problem,
the Plaintiffs would have deolded not to purchase and take possession of the
Real Estate.
11 B. Had the Plaintiffs known the true condition of the Residem:e. they woulel have
not purchased and taken possession of the Real Estate
119. Necessary repairs will require very substantial cost.
120. As a result of the foregoing unfair or deceptive acts or practiCliIs, the Plaintiffs are
entitled, by virtLle of the provisions of the UTPCPL, to recover the following:
(a)
actual damages to fully repair the damages resulting from the
Unconnecte(l Pipe;
(b)
treble damages; and
(e)
Reasonable counsel fees and costs.
WHERFOAE. the Plaintlffs request the following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in excess of the
Court's arbitration of limit of $35,000 together with an order finding McNaughton liable
to the Plaintiffs for costs, reasonable attorneys' fees, treble damages, and other
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appropriate remedies under Pennsylvania law, in an amount to be determined by the
Court.
COUNT IX
PLA1NT7FFS v. MCNAUGHTON
BREACH OF IMPLIED WARRANTY OF HABITABILITY
121. All of the foregoing paragraphs are hereby incorporated by reference as though
fully set forth herein.
122. From the time of the Closing until present, the Residence is not fully functional
and habitable because Plaintiffs cannot use the Shower.
123. McNaughton has breached Plaintiffs' implied warranty of habitability.
124. McNaughton's breaoh of the implied warranty 01 habitability has resulted in
signiflcant damages 10 Plaintiffs.
WH5RFORE, the Plaintiffs request thi! following: an order entering judgment in
favor of the Plaintiffs and against McNaughton in the an amount in eXCeSS of the
Court's arbitration of limit of $35,000 and an order finding McNaughton liable to the
Plaintiffs for costs, punitive damages. consequential damages and other approprla.te
remedies under Pennsylvania law, in an amount to be determined by the Court.
KEEFER, WOOD, ALLEN & RAHAL. LLP.
Dated: ~-'j...o'S'
By; ~ d 1iJkr-
Elizabeth J. Goldstein, Esquire
PA I.D. # 73778
Attorneys for Plaintiffs
415 Fallowfield Road, Suite 301
Camp Hill. PA 17011
717-612-5800
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I 7T;~S;:~ '[.U".~"u"~J.. .....
L.=PA" LlCIjl\lSED J:lll.OKE::J PA. LICENSED llR.OKER . .
This Agr..m=nl mad. lbls eJ 8' ~
7l ~ J e tf!...
]
1. PlnNelPALIi Be''''''''''
{r..iding oJ: tJtIJl
horolndtor ""Iled sellZ'z"nd
(J"~dit'ig.t
hereinafter ""Iled Buyer. .
~. PROPERTY, Stllc:r hereby .grees 10 .eU iUld convoy lO Buyer. who ho,.by ~ te,pul'<:.h.aso: ALL THAT cERTAIN Lot or picce
of Ill: d w1'.!!..,bulldln ,an improve oots t~o ere . i~lltly. know ,~ze:.t...t'f ~ei!:i~-q.:.. .
3. ZONING: Zonilli a...ili""tion
Failure of tl1.is AgrollmW '" contallllhe %Ooing c!wlfi...tion ""O!pt ill "".. whero Ille proPerty (or each parcoJ thoroof, if su~iviQable)
is zonod solc1y Of primanlY 10 permit slngle--lamily d.w~mgli shall ':"I'd'll: thl,Asram""t voi~.ble at the option of the Buyer Illld if voided
dopa,its tcnd",od by tbe Boyer shall b~~O!I.~ lbe B\l~llbout. ,..qUlr~~~2.uI'Uaion.,. , .,.
~.TERMS:(a)l'urellasePric.iO"I~~. ,~..,~~~ .
",: (S 1?$,I.'Jt:JO;-
to b. paid by ell. Buys, as foUows: .. .. ..... ".. ." ,.. . '" .'. ..' ,
,1>) l)EPOSrrO=k~ka.NliItaCM.QpiDEoraus ,.'.. I";' ;.)..:." ',' .IQ.:z$7:J.--
aa:r-.rl~, r.l!~pt ~r ~i~ L111tcrcbJ IlCblD",Il:d.8Q1 "u".__':'.'''hn~.'.~''.' ..l:.~"",:~:.r,: ..:" :$ '. . ~I .
1f 1IIa':!n ID be ~1I!!d. aIi Dr wfglllllllC da, or 19_ ....
(C) AObl~IO('ol,A..L DUOS1T Iil,lC QIl9r bcfarc d:lc I:' ," '"
....r 1'_--..............-. $
(II) t.:s~~r~~:::.:~=J~~~j~_nn'...":..-...~..........:...:;:~.u::~::.:..:u $. j7~~~".'--
"," , . ,". .
, . . TOTAL..::.;............,:' S /ys;. ~ -
Writt.~~ppmll~g(S;;;n~t6I!1C!!il!.ol'bef~lbe 9rJ:J- d.a~,l.,?....... (,.LtJJ,--.:...,., ,p~
...,_ '0 IE made .. 0' before the )"" r- do1 of hfI.;6 :!.:i ~ -= li.:t2-- .
Thee Cclla'A'iDs 1h21.1 hi! .ppartlanlXt pru-~ iii of .IlC'ld :1.1 limo ~r m:lJe'IIllDL: TM= AI lcricd aM ,.u.QllI:d., .~, iDwa~ gn mMMI; lWl.ImpUolll. CQClOWhinium f=a
OlD.! ~ aaOl:ialian rea: iF Ul'. WII&tt amilgr.GWe1 ta;a~ irum. I.O$d.bcr wlw. MY Q~ fi<<mblll;~tip:ql M"'lcll:l., AD Rflhy:TftUl:ltCf ~ I~l bel dlYiltci
-.vol)' lIn1lStl Ol~u... prlWldt:d IuwIn. . . . ...., . I..:.:.... .~
~. tkOP'tR'T'V !E'fTL~1" CONT1N~CY: Thi::; lJ.~lI:I1l i:I: !iUt.jcar. to lh= Jr:ltIl!WeIU .( h'l:T~ pro'" IQ~lc:d it . A. '.c'
. . _I
OIltJfbcfa:e
t. 'f1/'o1:^foICli"\G COmlr'~cY: Tbl, ur=m=' is .mb~ lp tho:: l'ltuml;i'ns ;u; r(II((.tm . .
'"I "1t,,,,,,,pAl.-.MOUIolT' /1\1$0.00. - TYPE I"'CI'IV"'" :~.' ;.u"''''U'''TER~ 3()o/~
MAXl",UM lI'ImJU. _ '-'1...1 ' .., A
''''TE~ RAT! ' /'7 ,. HMlMUM TOTAL POlrll'i. ''''CLUDINQ ~O""..OaJQI"""'llQ'" 1'IiE. TO III r.-m BY Ttili aUYER' ., ~
'l'SkM'N"~ D.."l! ra, O~m..I'l_Cammilmcn' ns.ttl.I:.~ ,. 1'!,'!i7 '\
.
'St'o~l;9' mu a.d:VIe .Bu)'er or ~Il:: soura:s or B1o.ctpae ruDd$, tlll1 'CiUln'f. aallJJK: rdllab;tbitilY rtr ~ibhls: :Buycr'.s mortp,t::. If $Did mu SUloI1.- be IiIwintd
as hddllpl'P~d,l~ AI[.\'lIl!!PIl:l1ll1PaU bel"lULL Arltl VDIDaw:l.a1l dl!p6t\1 Dl..q~Ih" be MWllrod. tDliIlIt :a\l1;tcn IlIf bel'0R dllllli Qrll:tUCIai:IIL 15 pRwklQ:! .ttr:ri;ln.
5Ubj~ haW:Y1Il1 IClll!1~ prmmClulIl f'U'2.Af'~ I5C;b) arsd. 5(t'). . . . .1_
Cb) ~Il:rcr:mll ift:lkc II gn~ .DPU~ to a. rspadlllllllddlna 'iM&j(IIU01l. Cor mi:;i8ll! IcuL 'flUID -. =.l;pdlU" du! fJtH1l1.b1: Sdld"! aptll'lll~al hcrnr.
$h.Qul~ llu! !.uyel' I'DJI Jcr ~ SIleh .c6m,'p1a.~ lIn1ialiva '+'ithiI\ Ua~ ~rJtd litb~ 11 1"-11 "be 011: dill! "!.t~ IIf IIle Sdlcr.s.!!thln rlYC (.5) a.idlcbr days Ihrn::Jltt tQ:
m ~ID1'~ lhiE I\Jfn:lIJct.t mJLJ.. AND ~OlI). 11 wbidl. lime. all mollki paid aD SlI>>LIII~ 'lIIill b; tDr...._ to s~a' lIS IU:JlRdMcl! d~. ~jt:i::lIQ ill: Rull:!ii and
Jlq!:Ulili&ll'l&: or t1M PmIl&1~Yllllil R;:;d ia~t\ CCImrII.i~n, ar -
{ii) io..b:sctlcc",r"l'iuCDDGliGt: Lo!hc:BU)'a'ltydu!:SdJI!I'~.r1ni1llil~crl.twuu.~VOIP,llu: ~iLioJ1IN1 ccmltll~~~dcd. f1liin ll\isPillrllBnoJlh.
lC1~l'it:!' wkh lJIt.'I Dtbl!'t nuadnlliDnlinpcia dlll.lDIIIY b; bctd.. or ndwM h\lf'lilCj shBll del ~ fllbiW :tnrl lhLa Aazumaal ~I mImIiJl clTdiyc: a=vn:lihl
10 I~ wms: in lhe: amr: rJ)llnIlCf ~ it lill: .R4i&.i:cn ;znd =m:iili!.ptIe)1 WI!:fc. _ :;. 1m' bcre.af. ' .
(;-) Sell~ at AIG mLl~ rB;l!Ii\ll!' ~ _riLl=' aDanIilitldll 'fa1l~ Ulltll the ~ Q( RtlkdJe;nt, for tlle.mld iOlij.h an w bd'_ {be Icrmi.aal &ll! ia ,ps;driN. If tbt G~tc comnUtllLll:DL
is 1I0L r~ will dle ItrmS .u I~nd ."~P, tit "~lI:r~. ~~ i'L *'",\inl b)' lhc l.\arcr,.ao. Dt bl::r." Ih: _df1N.dal.;;, StIlt:;\' shall hA~a; lob.. QPlign.
II J.hM d.a.~.'or ;L(I1luh=r Ilmll: thmWter. dunel the U::nDot I:ha Asr=rnCD~, wu1L tG1 DOL br:1C1ud $" ftlri; ar ~pl. (I( ~ ,C1JdlIb,1.'lmml ~ llh: ScUcr, ur Alt:chl.. LO
d.:i:l.rcdlili A~t NVLL.i\ND VOID, ~ wrlulI:!1 nMir;z to aa.:B\I)'f;Ir otlW.lner~ ~citmctl.1L1 whll:lh.l1mc&l\ dapadl mu".;o;;:; 'paid oa ~OUhl.sblll bC! rll!U1th~
LCl lttc Buytt. ~ubjl!l:t 1& the JI~mCJll rcquirH.. It IJIY. pl\Ttid~ Far ia hriaJnl.L'h 120;1]1 at, em. &I(Id. (liD. .1' \ .. '... .
(d) Sdlc:r b~b11B~ Ie pa'fIlic ~m ';) ....dtutlllicd _POI1Uarli. RptU~h; =tIram adll3' IUYGr a IJMJ bi: 1'r:QUired by uK: Idldlnt hutitUlioq Dr IJ'U"II'I'iRI ;qr;mlia,
tel Sell=- nlll'llbt ~ IQ p;Jol ;dc;lIII'A~ mDrl,pSlI diMWll p.o:iw: uuUar \.I:I~ IIriIi -= in. Q.L'Il oJ a on,. C1b~lclnx rlflllnE;'ihB (M1. lmdini ilUlStuliloo rt:qllilins.
ll.ny one of "I.of sf~ C=s:. prawil!iiaa 1M: LClUloI .t ,nid r~ fila.. HI. ___ ... or Ute: Imlnu.l at Ihc: mcnpp.. ..
7, S"tJ\1"US aT w~-n;R ~D SEWU; ,cU.. Wll~n~ ,it=*( l)ak ~FI}" 11 JIrr'Ioic~ b1 W81:Ct aad U~
I_Ill". Furehcr. ScUll]" ...,.rnnll" U:lll l~s:I n'lil,et!tli' lire fully plLid. (ar "ad, .. of ~ dlW:l' Ibf IU qrc:era""'-t I~ 1ft 'UllrlClar)' IjIpctatlnB ~ . lh If tilhl!t aIClfIS,:licl. :;yflm
l~ prllolAI&::. Sdkr ..rrul~ nw MJlh~ W 80 ~ ftaa! tbl!: b'1unlqll'~ ar fJ'Olll d1UIl.la:lp.al awhlllrlt.ia Ih.t D'lIbllr,; "'ILh~t Ind/,r lC"'cr ~~;cdpt" i"dbU=o:j..
i. MUJ'ltlCIP",J., IMPIlOvEldEN'ISo ~lk:r hu IW AOLb=! ttl ",~c:ipld ImJllrovcmt:fll.!l t~h a.s ~Idcwalkl, I:Ilt'WII ~.) =CCJll. ~J!!!l'" ~'I..L
^.:J;;dJ l.Cl & ~lIblk I"OIld ~ rell.Wrc iJ:s~ or II. Hi'~ ,~~r;tU)t:l' ~u rr~~ ~hll:' Oepanmt1ll ~ T~rt.llIjCh-
',dI'};;^';X;;::_ES' ~ ~;"r~~~;"'-;;;/~~ ~ ~A7~
~.
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(0)
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1Il
tel. ATrACH~ ,.lD1)iNP^ ltrtl mllAt:: ot p::an ar lhi~ A~=mm: 0 Woud Illf=hllioo ~~n Dl.!;:jClNl': Cl rri'l'.Il.I! Wat.:J"IOaoSil.c's-taJo; OFHAlVA
. _-"'). ~ ~ ,(waFAJbok
D .DWlI A.~ QUIJU.l C Hf!l!Ic llllig;lil\lgg. ~ul~CI. nr;I ~ "..UI1CNLtlI Illilf'...~;lIIil r.muinK
11. pERSDNALTY: All eUsI.ibt J:llllm~n... batinr.. aJr~l)dilklnl/l& Md Ilshlinl .;i1mll"C5 (illClllldfZlI t:h.andllUm'l lad o.,IURJ: ~:~ WI~ "aU 10 .11Il:2l:Jtdinlt. .setGlIo, Slom
ill Piill1lh'(fI;Q( 6hd cwr pef1n'Uul' l1.:r.wres, I! wetl .. :lU r-mar;:s, ~ Itlu. T.V _ anLCllhU. I'I;I.IL&U anz:I r&~r sr!.lCft'd. =,unlCA. wu... _1'km:nI. kitdoo!lll ~. dnI~
S&.!Ill 3nII.Iat d'rKIfli m.,de5 lIwrllr!LP' v~ 1it1l1l1lU. COlIgfinu rOT' lij~1fe.,.,~ and dC')lt!lS. ~ :adia&l;If g)1';r:l.~...J.N'dco:rCl~ 5bcIII; It bDf. lInIaI~ii~J,
n~d.5. d.tl!t.po::r)p rod hi1ni"'v~ cur~n rodll. ~n M tuardVfBnl, all U1;~1 mllhbtry. plWUl.p f1L'1W lr. ~r on Jll'dW'[}~ or salllt1ilDleJ ~..~ [rom ~:d'lc:r
llJU;llecl if! Lhia^~en'.:&r"lnd~d~ in!JaI:;.!i.a.klll,ncl p~'IJri;;.I"'CIIDCll;lrfhc~a"ci:lll:n~d l1=Jn"l;W1l1lr ~~~~A_ti~~~~tiZ.
c1a~=grU,lsAAtDsi~.: An1rIBn:lln1nolbs1ljaIiJmdJoa''="lcilllolrl.lolb;sto;n;d.lb.ndu=~''IUM.lI'a(JCtdlnQ~IItc:aJIl~,!~~ '. .... Df l01I
Ih.~1 ~e!~b~ ..~drJJ"?i ~~tk.LO!ll1 Of~II'CIII'1.~ ~~ 1....thl:l~.I\.II"d.lpI)' I:lIhll'r rl):~l'2IQl if.em!~f~,.dlOfleJ.tlprl:&pcrWDrtmaDrd1:r;UWXll:: $d&:1oI;tatat.
WoI IRl'lm.w:r....I.. tlIII!l;~W I~~plll:b~ II/I=IlWftmnl,1Icc;L 0_....:1 i:Il!Ifl)f"licl\lIl_~m1:l1IlDCI!Ilml~. W(OlPT1Nt:.lIC1'41I:i'olllJt,lltu ~"~'"l'\"'"
EDM.oIlIloaI~"!fcnrl101ll1",">d1....::c., _~ofNUI,lXI"llllF'arri;Ms"rl"ib.k.'IIZ:CtlIJl~llr-"":IIl'~~"'l'~riol.i"",";d~Il=IIOCItIIn..lnllln4'
....,,~.ttc1e~(rc~~M1mtf~1Ir4IJj,z.o_.tJiilI~bk=Pl'JWlhIl:M1II=IQ!IIIrtd~..rc:I....WCI.l...lA:Nr.lIlCol;UII!>""lly'lll.tIlC"n:lllllla: I'I~'
~J "r'If,&'l!I"wlllpa,hIt~~r.al\D--irlli. 1. 't'. . '. ,,'.1,1., . .,... . .
ro 'Tepnnoa.".:'rlidl\l~-=-~r.ioilm~l;I;urdJ",Wk~rd..M~r.rftlnll.nat'lllIOr~nm.lt~.... ,
'lit ,.1ln3:tII.~ l'ft f)pQCI iuunrm:OlVar l'\rI: ~wjlh ~~..... ~tI, iallll'UIClll:Il~Q~rd:lRl"/p::>. tJr~"" r....rrw.v.
IIwJ ~~~=~~:~.Ilo1~M":~lI~~ ! . .
1-=1 anr ~ IZ ~I.~ WIlIdIIllll be ~lmJ t11' lh~ ~ IlmltSlt't: CtttIllIIIf At ~c "''''ClIaJ zuttr"MiI r...l!rt1l1n=twIo111I1\ 1:11' u.14~1I111l1~ 1~1I:1.1 ~ac:rl~lJo" lIf .he
rttlll\llollllll'l.t\oc:CII~Itw.lu.et~l'.l.llb'" WKn,pil &IIlIlWd farb,dKSdl\!/. H~I b'It .....-.qoWlllf'O'fl7l..o:sIn:d b~~a"'l'el!ltt~i1II5l a,!ti:ll!l(JJ'IIQ!II!l!UD.ll
...*lItCIl;andlJaidIlliptlJl'riI!&r,cr. .
11.1] hilbeWallhtSdb=rllllluble.\.I:I s1~1 JDOdAl\4I1l1ri=CI4l1le 1I1b:.DJ:lIKII ~ *Ullnlllrml! ""11 n:pmahIt tlik~IIlI\JI:IIII~.~;U .lI.rlMf:!lld, !l~~ *,;llfh~ Ih~
optIlnOil.l~.I&II.IlIII~1Q ~$o!Uc-~lltJ p.1l"1Ifo11ha.lL n.k!lIlfIlllllflftktCll' arbdn, ~1II~ 11I1 mDnl.!;1 plll.d by Ult ~tqm:k> Ihl:S.lltt M1AC:O\1alof liIa nlClIIU~
""'" 1IJIl"~ seI......;u rdIl\DlIIm In 8111711;I" Till" 1Jt1l GI:Ib ia;urr~ b). Lli~ blZiW (MUr.lmJiI!!ll'lil Jpl!dl'llllln l",I1(;lIlugb I~la Ji_ Ii); IUl'Jnn ~ ill Paf'lSr. 1~I~J~
an '- _1aIW:: -= ~!IWI. be..IIO tlU\llCl' liIl1IIlt. Cf' ~Itlit. all clilict dl'lac~. /wm<:r nd UI{I ,tlof=m<:ill Jhill ~ N II A)'I/b 'IDle.
1:. P'A.YMEflTo'- nDGtl1:. OiCJ,GIi~.rqU1lks lIrl..r...r~ "..olIlhe p!r3mlh!ll_t4~~~ lrwPld -Ji.FIl. r~I"""S~lcr,...hlil nil !"illlm It-lin
~. I;D"OW _ uliil1 ~_II~.r lo:mPl;IlIllan alibis ^p....11n nnl_rmit... 'I"lz1I a11l11'fUcUI~ b,w.I anli "*1l1llLlCl.ll1,A,I~ 1'\l14ht; Sdlu ml'IY.lIIllll ",r 11Ilf "',.;
QWINl.hAW>P;711hCCt1cJ.eha;t~~~il"p!IIm.11Iu-=-aallr:J:hb"Ikr..."/;J.J:.... -::I.'::"'~~ ~'.._._ ..\.. .
Irtilerll::lll.,fuplll.ebel""eQ1 a,r:'BIYI!f'Jl.4IMi ~1I~"'htJ 1lI.t1dMd.la4i~ d~la.,.^!=II II'lI1.rw1 K ,rI\IplHUI~l/;l r~",,"1bAi,ciIlIpu\.6lurd "'11 nDl he Il.t.blr:'1> 091hr:r
lloIInr Gltbu5d\llr rGrrelus;inJ (Q ~ w~ "'~Ilnl_d llI~l/I.e II'rill!:it...lIt<<l'I!.:DI. 'bawo:etllollNlUMI !IdlctlOll':I. ftlidCWK~. ~ Inl!$tll... :l1'H.IUJ..
.. w.-sa Urr "'''''I ."'ar ~~t ueIb: J_c' Ia Sllpl"- !\:Ir.)~~n=mm _r .........IllIlll\W..llni "';o:Il~.1 wulJZlr .!hl.~" r_.CIlbk; ~u.!;IIlq"; 1= :load 1'OlSlJ" ...ill
bo:fWlidbt l'l>;PI""Jalilloi.,lheAI&Illl:d'Sllb&l!.t... ...._ '. '" .' ) \ '.~ . . \
loI.~,ui))nl'f1:lb:; ~..~- -.'. .~.~ ..' ".
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1I.illlham.aDld~I),"IIIkPrJlIlli.BIIO[,UIIa"'-"'Or*'ll"lrl~1I1U11._"." _.,
(bl S..<ooII....II!lII... ~..., ~ l1iIIll&{l3. ",rI=a lIIdaain..il!lllllA& lcucIsl.IF iIIll,.III"~U!JliolIeI}";UI fOr Ihe l!l"1!tniad'/j'Il~~fIihI-ua._lIHI>t l;Ir Ib_ nll~.
tcJ ~lo!lIUk!I'lII'ln_lIU;Ildd,Illd~~.IIII!fI!II,,,~ ...- . }" ..-.- \.. ",':'\"!t'\ '~.,
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lbl S.lII'lIIUO!Rbl!arrisloorku:l (nlllll.~ .f"tlu;r~mJtill..orZ1G.a.L ~f~_emj~UI Ulo:-~,. b,. r.le'orlllhueutthJ. ~sll,allllll~~lh~
.jIWl.(l'l::lQIJlIlAJl".~ ItnII h!dI!i~1lII blIid~(IlItI anal:l:tlGIl#1IqrA=;c;jlUn&.lhc~ iii Illlb<ll'l ~tiQZl wilh dw.~~( apy lII.u"","
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1",*';_ 11II4 I1GI ~ ..r,,~ Ih ~11l:IGII t.ar1nl'aalU\iIlP'" br I.hl 5..1(<< O(.~ <<!lI!r lIiYIrIlr.lIIJtIllirfll ClIIIIImccur ScIkrt tlrl' lkJl;p:ll =r rtlrSt:IJl'l' or
JIo'!)'arUlt: Iallllf'~~aad _pk!,jdtoftlf-'!IrI_,n_BlOtcr. tr...... Dl'illI,,,rlll.J,,,,,"_~ ._,.~...iIoillllU"li!~ IFIllR la Jl"IIr:llllt Il
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I.Iat llaI:....,.....1OMIJl- u.:4IkI~IJriI=al~ Iip_ ~w. ;mdZlIlJl!t m1i' ""..can; at 'iVI!I' Imtdo, ._u.., ...It-.mI.IqIJ~.ur.d'Il4orCI ~ .....Il.
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08/18/05 THU 14:26 FAX 7377062
INS1~NCE & SURETY INC
141024
VERIFICATION
I, JEFFERY L. SOUDER, state subject to the penalties of the Crim.es Code m
18 Pa. a.SA. ~ 4904 relating to unsworn falsification ttlAuthorities tha.t the facts
Set forth herein are true and ccnect to the best afmy knowledge, infonnation and
belief.
Date:
as-
~ /~ kJv-
I :RYL. SOUDER
88H sZnltZn',j iLQ-l
~~ NVBV'8n snnz-Ll-sn
08/18/05 THU 14:26 FAX 7377062
INSlffiANCE & SlmETY INC
igJ025
._....__....,-.J-"..__
VERIFICATION
!, MARY ELLEN ROB1NSON, sta.te 6ll.bject to the penalties of the Crimes
Code in 18 Fa. C.S.A. ~ 4904 relating to unsworn fals:ificatitm to authorities that the
facts set forth herein are true aIld correct to the best of my knowledge, information
and belief.
Date:
or /9)()5
I I
~1lrJ/;/ fJb-- bft<.~
MARY 2LEN ROBINSON
66H SZD/sao' d 9lI-!
~o~, ~lt:8D 'DOl-II-on
.'
CERTIFICATE OF SERVICE
I hereby certify that I have sent a true and correct copy of the foregoing document
by placing a copy ofthe same in the United States Mail, first class, postage prepaid, to
the following:
Elizabeth J. Goldstein, Esquire
Keefer, Wood, Allen & Rahal, LLP
415 Fallowfie1d Road
Suite 301
Camp Hill, P A 17011
Date: 10 Ilol oS
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Thomas .E. Brenner, .Esquire
G-oldberg Katzman, P.e.
PO Box 1268
Ilarrisburg, PA 17108-1268
717-2'A-4161
Attorneys for Additional Defendant.l effrey A. Wilbur Plumbing & I Ieating, Inc,
JEFFREY L. SOUDER and i'vL'\RY
ELLEN ROBINSON,
: IN THE COURT OF COMlvION PLEAS
: CUMBERLAND CO., PENNSYLV,,\NIA
Plaintiffs
: NO. 05-4091 CIVIL TElUvl
v.
THE MCN.'\UGHTON COMPANY : CIVIL ACTION - LAW
d/b/a MCN'\UGHTUN HOMES,
INC,
Defendant
:JURY TRIAL DE;VIANDED
v.
JEFFREY A. WILBUR PLUMBING
& HEATING, INC.,
Additional Defendant
ENTRY OF APPEARANCE
Please enter the appearance of Thomas E. Brenner, Esquire of Goldberg
Katzman, P.c. on behalf of Additional Defendant .Jeffrey A. \](,'ilbur Plumbing &
Heating, Inc.
GOLDBERG KATZMAN, P.c.
Date: T\Iarch 16,2006
-'
By: ( ,
Thomas E. Brenner, Esquire
Attorney ID #32085
PO Box 1268
Harrisburg, PA 17108-1268
717 - 234-4161
Attorney for Additional Defendant
...
CERTIFICATE OF SERVICE
I, hereby certify that on this date, I served the foregoing document, via U. S. Mail,
postage prepaid, on the persons set forth below, namely:
Elizabeth J. Goldstein, Esquire
Keefer, Wood, ,Allen & Rahal
415 Pallowfield Road, Suite 301
Camp Hill, PA 17011
John J. McNally, III, Esquire
Derek D. BahI, Esquire
Thomas, Thomas & Hafer
PO Box 999
Harrisburg, PA 17108-0999
GOLDBERG K\TZMAN, P.c.
Date: :;VI arch 16, 2006
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SHERIFF'S RETURN - REGULAR
CASE NO: 2005-04091 P
COMMONWEALTH OF PENNSYLVANIA:
COUNTY OF CUMBERLAND
SOUDER JEFFERY L
VS
MCNAUGHTON COMPANY THE DBA MCN
CPL. RICHARD SMITH
, Sheriff or Deputy Sheriff of
Cumberland County,Pennsylvania, who being duly sworn according to law,
says, the within COMPLAINT JOINING ADDL was served upon
JEFFREY A WILBUR PLUMBING AND HEATING INC the
ADD'TL DEFEND. , at 1036:00 HOURS, on the 23rd day of February, 2006
at 6508 BRANDY LANE
MECHANCI SBURG , PA 17050
by handing to
CONNIE DENNIS, OFFICE MANAGER, ADULT IN CHARGE
a true and attested copy of COMPLAINT JOINING ADDL
together with
and at the same time directing Her attention to the contents thereof.
Sheriff's Costs:
Docketing
Service
Affidavit
Surcharge
18.00
8.80
.00
10.00
.00
36.80
So An?~~
R. Thomas Kline
02/24/2006
THOMAS THOMAS
Sworn and Subscribed to before By:
me this J.:'l;E:..- day of
D puty Sheriff
J~AD
Pr 0 ar
In the Court of Common Pleas
Cumberland County, Pennsylvania
Jeffrey L. Souder
and
Mary Ellen Robinson
Plaintiffs
Civil Action-Equity and Law
v.
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Civil Division 05-4091
Defendant
Motion to Set Mediation Date
AND NOW COMES, Jeffrey L. Souder and Mary Ellen Robinson, Plaintiffs, by and
through their attorneys, Elizabeth Goldstein, P.C. and avers:
I. Judge Guido ordered mediation between Plaintiffs and Defendant on November 8,
2005. (A true and correct copy of the November 8,2005 Order is attached hereto
as Exhibit "A" and made a part hereof as though fully set forth herein.)
2. On December 28, 2005, the Defendant, McNauhgton Company (herein
"McNaughton) joined Jeffrey A. Wilbur Plumbing & Heating, Inc. (herein
"Wilbur") as an additional Defendant.
3. McNaughton is represented by Thomas, Thomas, & Hafer, LLP.
3. Plaintiffs and Defendant agreed to schedule the mediation after Wilbur was served.
4. Plaintiffs and Defendant agreed to use Retired Judge Thomas Raup of ADR
Option, Inc. as the mediator.
5. Wilbur was served on February 23,2006.
6. Wilbur's attorney entered his appearance on March 16,2006.
7. After e-mailing McNaughton's attorney on April II, 2006 asking for available
dates, the undersigned sent McNaughton's counsel a letter on May 1,2006
requesting available dates for the mediation. (A true and correct copy of the May
1, 2006 letter from the undersigned to McNaughton's counsel is attached hereto as
Exhibit "B" and made a part hereof as though fully set forth herein.)
8. McNaughton's counsel responded to the letter by leaving the undersigned a
telephone message but this message did not contain any available dates for the
mediation.
9. The undersigned followed-up with a second letter requesting mediation dates on
May 24,2006. (A true and correct copy of the May 24, 2006 letter is attached
hereto as Exhibit "C" and made a part hereof as though fully set forth herein.)
1 O. In the next three months, Judge Raup is only available for mediation on July 28
from 8:30 a.m. to 11 :00 a.m. in Williamsport.
Respectfully submitted,
11. The undersigned and the plumber's attorney, who plans to participate in the
mediation, are available to attend a mediation in Williamsport on July 28, 2006.
12. Pursuant to the Court's November 8, 2005 Order, McNaughton has a duty to
"proceed expeditiously" to the mediation and to act in "good faith".
WHEREFORE, Plaintiffs respectfully request that the Court order McNaughton to attend
the mediation with retired Judge Thomas Raup in Williamsport on July 28,2006 at 8:30 a.m.
ELIZABETH GOLDSTEIN, P.e.
Dated: June 23, 2006
By
~~
EL ABETH J. GOLDSTEIN
Attorney J.D. #73779
355 North 21st Street, Suite 202
Camp Hill, PA 17011
(717) 724-0266
egoldstein@elizabethgoldsteinlaw.com
Attorneys for Plaintiffs
I
.
bhi bit A
.
It
Court Administrator
-.
JEFFREY L. SOUDER AND
MARYELLEN ROBINSON
IN THE COURT OF COMMON PLEAS OF
: CUMBERLAND COUNTY, PENNSYLVANIA
V.
THE MCNAUGHTON COMPANY:
d/b/a MCNAUGHTON HOMES,
INC. : NO. 2005 - 4091 CIVIL TERM
IN RE: PRELIMINARY OBJECTIONS OF DEFENDANT
MCNAUGHTON HOMES. INC.
BEFORE GUIDO. J.
ORDER OF COURT
AND NOW, this 8TH day of NOVEMBER, 2005, the parties having agreed that
paragraph 22 of the contract requires this dispute to be submitted to mediation in
accordance with the Rules and Procedures of the Real Estate Dispute Resolution System,
they are ordered to proceed expeditiously and in good faith to conclude those
proceedings. These proceedings are stayed pending the completion of mediation. This
matter may be relisted by either party upon the conclusion of media' .
Elizabeth J. Goldstein, Esquire
415 Fallowfield Road, Suite 30 I
Camp Hill, Pa. 17011
John J. McNally, III, Esquire
305 North Front Street
P.O. Box 999
Harrisburg, Pa. 17108 - 0999
"n,,:' ~ ~ !r,,~ !
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''.:: ~"'("'!'>,t ~ '-Cl^RO '
PI .H, )~~.\^,~ 3r.,\,f.: .:-v'
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Exhibit .B
.
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~
.
.
.
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.
It
.
.
ELIZABETH GOLDSTEIN, p.e.
3f5f5 NORTH 21ST STREET, SUITE 202
CAMP IIn.L. PENNSYLVANIA. 17011
TELEPHONE: (717) 724-0266
FACSDIILE: (717) 724-0288
May 1, 2006
VIA FACSIMILE 717-237-7105
John J. McNally, III, Esquire
Thomas, Thomas & Hafer
305 N. Front Street
P.O. Box 999
Harrisburg, PA 17108
Re: Souder v. McNaughton
Dear John:
I am following-up on my previous e-mail requesting available dates in May and
June for a mediation with Judge Raup. Please also give me available dates for July.
Please provide me these dates by next week or I will have no choice but to go
back to the court to request relief.
Sincerely yours,
ELIZABETH GOLDSTEIN, p.e.
[~~
By: Elizabeth 1. Goldstein
cc: Jeffrey Souder and Mary Ellen Robinson (via e-mail)
Thomas E. Brenner, Esquire
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ELIZABETH GOLDSTEIN, p.e.
3f5f5 NORTH 21sT STREET. SUITE 202
CAMP lIn.L, PENNSYLVANIA. 17011
TELEPHONE: (717) 724-0286
FACSDIILE: (717) 724-0288
May 24, 2006
VIA FACSIMILE 717-237-7105 and Ree:ular Mail
John J. McNally, III, Esquire
Thomas, Thomas & Hafer
305 N. Front Street
P.O. Box 999
Harrisburg, PA 17108
Re: Souder v. McNaughton
Dear John:
As we have not been able to reach each other by phone, please provide me by fax
or e-mail available dates for the second half of June, and all of July, and August for the
mediation in the above-referenced case.
I ask that you get back to me within seven days or I will seek action from the
court.
Sincerely yours,
ELIZABETH GOLDSTEIN, p.e.
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By: Elizabeth 1. Goldstein
cc: Jeffrey Souder and Mary Ellen Robinson
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Attorneys for Plaintiffs
CERTIFICATE OF SERVICE
I, Elizabeth J. Goldstein, Esquire, one of the attorneys for plaintiffs, hereby certify that I
have served the foregoing paper upon counsel and parties of record this date by depositing true
and correct copies of the same in the United States mail, first-class postage prepaid, addressed as
follows:
John J. McNally, III, Esquire
Thomas, Thomas & Hafer, LLP
305 North Front Street
Harrisburg, PA 17101
Thomas E. Benner, Esquire
Goldberg Katzman
320 Market Street
Strawberry Square
P.O. Box 1268
Harrisburg, PA 17108-1268
ELIZABETH GOLDSTEIN, p.e.
Dated: June 23, 2006
By
CLb hiL
Elizabeth 1. Goldstein -
ELIZABETH 1. GOLDSTEIN
Attorney I.D. #73779
355 North 2pt Street, Suite 202
Camp Hill, PA 17011
(717) 724-0266
egoldstein@elizabethgoldsteinlaw.com
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Jeffery L. Souder
and
Mary Ellen Robinson
Plaintiffs
v.
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
In the Court of Common Pleas
Cumberland County, Pennsylvania
Civil Action-Equity and Law
Civil Division No. 05-4091
Praecipe for Withdrawal/Entry of Appearance
TO THE PROTHONOTARY:
Kindly withdraw the appearance of Keefer Wood Allen & Rahal, LLP and enter the
appearance of Elizabeth Goldstein, P.e. on behalf of Plaintiffs in the above-captioned matter.
Dated: June it 2006
Dated: June.:l).-, 2006
Respectfully submitted,
A. Feic tel, E
ttorney 1.0. 77426
210 Walnut Street
Harrisburg, PA 17101-1797
(717) 255-8000
ELIZABETH GOLDSTEIN, P.e.
By
Eli abeth J. Goldstein, Esquire
Attorney 1.0. # 73779
355 North 21 st Street, Suite 202
Camp Hill, PA 17011
(717) 724-0266
.
CERTIFICATE OF SERVICE
1, Elizabeth J. Goldstein, Esquire, one of the attorneys for plaintiffs, hereby certifY that I
have served the foregoing paper upon counsel and parties of record this date by depositing true
and correct copies of the same in the United States mail, first-class postage prepaid, addressed as
follows:
John J. McNally, III, Esquire
Thomas, Thomas & Hafer, LLP
305 North Front Street
Harrisburg, P A 17101
Thomas E. Benner, Esquire
Goldberg Katzman
320 Market Street
Strawberry Square
P.O. Box 1268
Harrisburg, P A 17108-1268
ELIZABETH GOLDSTEIN, P.e.
Dated: June 23, 2006
By
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Elizabeth J. Goldstein
ELIZABETHlGOLDSTEIN
Attorney 1.0. #73779
355 North 21 st Street, Suite 202
Camp Hill, PA 17011
(717) 724-0266
elZoldstein@elizabethlZoldsteinlaw.com
Attorneys for Plaintiffs
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In the Court of Common Pleas
Cumberland County, Pennsylvania
Jeffrey L Souder
and
Mary Ellen Robinson
Plaintiffs
Civil Action-Equity and Law
v.
Civil Division 05-4091
The McNaughton Company
d/b/a McNaughton Homes, Inc.
Defendant
Order
0.7
JUN 2 62006r"
Upon consideration o~~U~on~set Mediation Date amlllll) vt'p",idvll dha.
tRir9tll, the Court ORDERS atte'na a mediation with Retired Judge Raup in
Judge Raup's Williamsport office on July 28, 2006 from 8:30 a.m. to
Dated:~/)7{() lo
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JEFFREY L. SOUDER and
ELLEN ROBINSON,
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THE MCNAUGHTON COMPANY
d/b/a MCNAUGHTON H01fES,
IN c., .
v.
DefeJdant
v.
JEFFREY A. WILBUR PLUM~ING
& HEATING, INC., I
Additional Defend~nt
I
: IN THE COURT OF COMMON PLEAS
: CUMBERLAND CO., PENNSYLVANIA
: NO. 05-4091 CIVIL TERM
: CIVIL ACTION - LAW
: JURY TRIAL DEMANDED
TO THE PROTHONOTARY: I
Kindly mark the above-cap~oned action settled and discontinued.
I
Date:
142371.1
By fftq/~.
Eliza eth A. Goldstein, Esquire
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CERTIFICATE OF SERVICE
I, Elizabeth J. Goldstein, Esquire, one of the attorneys for plaintiff, hereby certify that I
have served the foregoing paper upon counsel and parties of record this date by depositing true
and correct copies of the same in the United States mail, first-class postage prepaid, addressed as
follows:
John J. McNally, III, Esquire
Thomas, Thomas & Hafer, LLP
305 North Front Street
Harrisburg, PA 17101
Thomas E. Benner, Esquire
Goldberg Katzmen
320 Market Street, Strawberry Square
P.O. Box 1268
Harrisburg, P A 17108-1268
Elizabeth Goldstein, p.e.
By
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Dated: Harch La, 2007
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