Loading...
HomeMy WebLinkAbout02-1221GLENN HERMAN, Plaintiff PAUL E. DICK, Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA :NO. 02- /~o~! ~ :IN EQUITY NOTICE YOU HAVE BEEN SUED IN COURT. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this Complaint and Notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may procccd without you and a judgment may be entered against you by the Court without further notice for any money claimed in the Complaint of for any other claim or relief requested by the Plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Cumberland County Bar Association 2 Liberty Avenue Carlisle, PA 17013 (717) 249-3166 GLENN HERMAN, Plaintiff PAUL E. DICK, Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA · NO. 02- {3) :IN EQUITY COMPLAINT Back.qround 1. Plaintiff, Glenn Herman, is an adult individual residing at 22 Henry Road, Branchburg, Somerset County, New Jersey 08876. 2. Defendant, Paul E. Dick, is an adult individual presently residing at 1100 Enola Road, Carlisle, Cumberland County, Pennsylvania, 17013. 3. On or about June 5, 2001, Plaintiff signed an Agreement for the Sale of Vacant Land (the "Agreement') offering $168,000.00 for approximately 70 acres of property located at 671 Old Mill Road, Lower Frankford Township, Cumberland County Pennsylvania owned by the Defendant. 4. The Agreement, a copy of which is attached hereto as Exhibit A, was transmitted to Defendant through agents of Jack Gaughen Realtors. 5. On or about June 8, 2001, Defendant modified the Agreement, including increasing the purchase price to $180,000.00, initialed all changes and signed the Agreement. 6. At the same time, Plaintiff reviewed and signed a Statement of Estimated Seller's Costs sheet, which sheet estimated anticipated costs of the transaction and seller's procccds therefrom. A copy of this document is attached hereto as Exhibit B. 7. Peter Karl(alas, a realtor employed by Jack Gaughen Realtors, was present at the time that Defendant signed the Agreement and Statement of Estimated Seller's Costs and spent sufficient time with Defendant to ensure that all provisions and information were explained to and understood by Defendant. 8. All modifications mede to the Agreement by Defendant were accepted by Plaintiff, as evidenced by his initials, which were handwritten next to each change. 9. On June 8, 2001, Plaintiff tendered a check and two (2) money orders totaling $2,500.00, copies of which are attached hereto as Exhibit C, as payment of the down payment required in the Agreement. 10. Promptly upon execution of the Agreement, Plaintiff secured a home equity loan on his current home with which to purchase the subject property, and wes fully prepared to fulfill his obligations under the Agreement. Plaintiff remeins fully prepared to fulfill his obligations under the 11. Agreement. 12. After executing the Agreement, Defendant, through his attorney, asked Larry Neidlinger, an Engineer, to start the process of subdividing the property, as required by state and local law. 13. Mr. Neidlinger substantially completed a plan and delivered it to Defendant's attorney. A question remained as to the exact line along which the property was to be divided. 14. The subdivision process was halted because of Defendant's refusal to cooperate in providing the details necessary to complete the plan. 15. In reliance upon the Agreement, Plaintiff asked Mr. Neidlinger to begin the engineering work required by state and local law to develop this property, which work Mr. Neidlinger agreed to perform at an estimeted cost of $3,200. 16. Mr. Neidlinger did walk through the property with Plaintiff, pointed out the boundaries, identified appropriate locations for the soil and water testing, and prepared a plan to set off a small lot occupied by the mobile home identified in the Agrccment. Count 1 - Specific Performence Plaintiff hereby incorporates paragraphs 1 through 12 as if fully set forth 17. herein. 18. In addition to arranging sufficient financing to complete this transaction, Plaintiff did, in reliance on the executed Agreement, contract with Larry Neidlinger, Engineer, to perform preliminary tests in anticipation of developing the subdivided property. 19. Plaintiff remains fully prepared to tender payment in full pursuant to the terms of the Agreement. 20. Plaintiff has had to delay plans to relocate into Cumberland County from New Jersey and has put all plans related to his relocation on hold. 21. Despite repeated attempts by Plaintiff and by his real estate agent, Bill Myers, to contact Defendant and proceed with this transaction, Defendant has refused to take any action and has repudiated the contract. WHEREFORE, for all the above reasons, the Plaintiff, Glenn Herman, respectfully requests that this Court order the Defendant, Paul E. Dick, to honor the Agreement for the Sale of Vacant Land executed by him on June 8, 2001. 22. herein. 23. Count 2 - Breach of Contract Plaintiff hereby incorporates paragraphs 1 through 12 as if fully set forth Plaintiff intended to further subdivide and develop this property upon completion of its purchase. Defendant's action has caused Plaintiff to lose any profit he may have earned in the sale of the subdivided lots, which profit he estimates to be $100,000. 24. As a result of Defendant's refusal to perform according to the Agreement, Plaintiff has suffered the loss of out-of pocket expenses which he incurred in reliance upon the Agreement. These expenses include the $2,500 down payment, $3,200 owed to Mr. Neidlinger, attorneys' fees of $1,267.50, and costs of suit. WHEREFORE, for all the above reasons, the Plaintiff, Glenn Herman, respectfully requests that this Court grant to him and against Defendant a judgment in the amount of $106,967.50 plus costs of suit, which amount represents all expenses incurred by Plaintiff in reliance upon the Agreement. Date Respectfully Submitted TURO LAW OFFICES J~oSu~'pl~t~lrSe~°~' ~squire Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiff EXHIBIT A 1 1. 3 5 AGREEMENT FOR THE SALE OF VACANT LAND · This form recommended and approved for. but not restricted to use by, the mmnbers of the pennsylvania Association of REALTORS® (PAR). MS-VL · PA LICENSED BROKER, ~ LISTIN~;Ji, ROKE[t (,~ompany)~t~. ~ ~t DESIGNATED AGENT FOR SELLER (if applicable) PA LICENSED BROKER SELLING BROKER (Company) ADDRESS ~ PH J FAX DESIGNATED AG1ENT FOR BUYER (if applicable) 2 0 ~.~[ ,is between called "Seller," and called "Buyer." 6 2. PROPERTY (1-98) Seller hereby agrees to sell and convey to Buyer, who hereby agrees to purchase: 7 ALL,THAT CERTAIN lot or J/ieee of R.round with buildings aqd improvemgr~ts there~%ted, if any, known as: 9 in the of t ~ County of in the Commonwealth of Pennsylvania, Zip Code tl Identification (e.g., Tax 1D0; Parcel #; Lot, Block, Deed Book, Page, Recording Date) 12 3. TERMS (1-00) ~ 70 t Dollars 6 7 6 , 11 13 15 16 17 18 19 21 22 23 24 25 ~7 ~8 29 31 32 33 16 which will be paid to Seller by Buyer as follows: (B) Cash or check at signin~th~ Agreement: $ Cash or check within ~ ~ys of the execution of this Agreement: (D) - $ ' (E) Cash, cashier's or c,~ified check at time of se~lement: ~L (~ ~si~ p~d on account of p~cha~ price to ~ held by Listing Broker, ~ess '~ise sated he~: / (G) Seller's wfi~en approval to ~ on or ~fo~: ~ ~} ~ ~ ~, %~ 23 (H) Settlement ,o ~ made on or ~fore: 7~ ~ ~- % ~ ~ i ~ a O ( (I) Conve ance from Seller will ~ b fee simple deed of s~cial wa~y unless o~emise sated hem: /Of (J) Pa meat of tr~sfer axes will ~ divided equally ~tween Buyer and Seller unless otherwtse sated here: At time of ~ffiement, ~e following will ~ adjusted pro-ram on a daily b~is ~tween Buyer and Seller, ~imbursing wh~re~ (K) taxes; ~nts; inte~st on financing ~sumptions; homeowner ~s~iation fees, if any; water ~d/or sewer fees, if any, togeths~.~ other lienable municipal se~ices. ~e ch~ges a~ to ~ pro-rated for ~e ~fi~(s) covered: Seller will pay up to and incl~~ of settlement; Buyer will pay for all days following settlement, unless otherwise stated here: 34 4. FIXTURES AND PERSONAL PROPERTY (1-00} 34 36 (A) INCLUDED in this sale and purchase price are all existing items permanently installed in the Property, free of liens. Also included: 35 36 36 37 (B) LEASED items (items not owned by Seller): 37 38 38 39 (C) EXCLUDED: 39 40 49 41 42 43 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 SPEC1AL~LAUSES (1-00) 4~ (A),~B~uyer and Seller have received the Consumer Notice as adopted by the State Real Estate Commission at 49 Pa. Code §35.366. 42 (B) ,,~f~Buyer and Seller have received a statement of their respective estimated closing costs before signing this Agreement of Sale· 43 (C) [] Buyer has received the Deposit Money Notice (for cooperative sales when Listing Broker is holding depo~tn, oney) before signing ~4 this Agreement. ~ . ~ _ I '---..~, '~,~' (D) The following are a part of this ngreement ifcheckod: ~r 2 ~'~- 7& g'~._~/ [] Tenant-Occupied Property Addendum (PAR Form TOP) t ..L ~"¢-' . ~t.., ,, ~ ,~ ~> ~4~ Buyer lnitlals:ra~~/: BPelBnlylvmnil A,l~)dltJon of REALTORS® 6. __FINANCING CONTINGENCY (1-00) [] WAIVED. This sale is NOT contingent on financing. ~-.,,~'~ [] ELECTED (A) This sale is contingent upon BuyeLobtai_ni_ng ~n~c~il~ as follows:/,e-'T/ 1. Amount of loan $ . · t' 2. Minimum Term ~ th ~ years ! 3. Type:"J~.~nd Acquisition Only [] Land Acquisition and Construction [] Other §8 70 72 73 74 75 4.Interest rote ~' %; however, Buyer agrees to accept the interest rate as may be committed by the lender, not to exceed a maximum interest rate of ~'/ %. 5. Discount points, loan origination, loan placement and other foes charged by the lender as a percentage of the loan (excluding any insur- ance premiums and VA funding fee) not to exceed O % of the loan. The interest rate and fees provisions required by Buyer are satisfied if a lender makes available to Buyer the right to guarantoe an interest rate at or below the Maximum Interest Rate specified herein with the percentage foes at or below the amount specified herein. Buyer gives Seller the right, at Seller's sole option and as permitted by the lending institution and applicable laws, to contribute financially, without promise of reimbumement, to the Buyer and/or lender to make the above terms available to Buyer. (B) Within 10 days of the execution of this Agreement, Buyer will make a completed, written financing application to a responsible lending insti- tutinn. The Selling Broker, if any, otherwise the Listing Broker is authorized to communicate with the lender for the purposes of assist- lng in the loan process. (C) 1. Upon receipt of a financing commitment, Buyer and/or Selling Broker will promptly deliver a copy of the commitment to Listing Broker, if any, otherwise to Seller. 2. Financing commitment date '~"t.A.- ( ~ '~_ 7, ~. O 0 t . If a written commitment is not received by Listing Broker, if any, otherwise by Seller, by"the above d~te, Buyer and geller agroe to extend the commitment date until Seller ter- minates this Agreement in writing. 3. Seller has the option to terminate this Agreement in writing, on or after the financing commitment date, if the financing commitment: a. Is not valid until the date of settlement, OR b. Is conditioned upon the sale and settlement of any other property, OR c. Contains any other condition not specified in this Agreement. 4. In the event Seller does not terminate this Agreement as provided above, Buyer has the option to terminate this Agmemant in writing if the financing commitment: a. Is not obtained by or valid until the date of settlement, OR b. Is conditioned upon the sale and settlement of any other property which do not occur by the date of settlement, OR c. Contains any other condition not specified in this Agreement which Buyer is unable to satisfy by the date of settlement. 5. If this Agreement is terminated as specified in paragraphs 6 (C) (2), (3) or (4), all deposit monies paid on account of purchase price will be returned to Buyer. Buyer will be responsible for any premiums for mechanics lien insurance and/or title search, or fee for cancellation of ,same, if any; AND/OR any premiums for flood insurance and/or fire insurance with extended coverage, insurance binder charges or cancellation fee, if any; AND/OR any appraisal fees and charges paid in advance to lender. (D) .~Sell~r Assist ~ NOT APPLICABLE "[] - APPLICABLE. Seller will pay: [] $ , maximum, toward Buyer's costs as permitted by the lender. 7. INSPECTIONS (1-98) t (A) Seller hereby agrees to permit inspections by authorized appraisers, reputable certifiers, insurer's representatives, surveyors, municipal officials and/or Buyer as may be required by the lending institutions, if any, or insuring agencies. Seller further agrees to permit any other inspections required by or provided for in the terms of this Agreement. /1:~ (B) Buyer agrees that Buyer, or anyone on the Property at Buyer's direction or on Buyer's behalf, will leave the Property in its same condition. In ! 14 the case of damage, Buyer will bear the risk of restoring the Property or of reimbursing Seller for any loss of value, t (C) Buyer reserves the right to make a pre-settlement inspection of the Property. Buyer's right to make this inspection is not waived by any other provision of this Agreement. t 8. STATUS OFWATER (1-00) (A) .An.off-Property source of water ~ is not available for the Property. [] is available for the Property through (Name of Service Provider)  I~.wANECTION TO OFF-PROPERTY WATER SOURCE CONTINGENCY' IVED. Buyer acknowledges that Buyer has the option to make this Agreement contingent on determining that the terms of connecting the Property to an off-Property water source are acceptable to Buyer. Buyer WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 23 of this Agreement. [] ELECTED. Buyer will, within days of the execution of this Agreement and at Buyer's expense, determine the terms of connecting the Property to the water source. If the terms of connection are not acceptable to Buyer, Buyer will: 1. Accept the Property as is and agree to the RELEASE set forth in paragraph 23 of this Agreement, OR 2. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement of Sale will be VOID. t~ [] (B) Seller represents that Property is served by an on-site water source. ';31 ,~-SITE WATER SERVICE INSPECTION CONTINGENCY t WAIVED. Buyer acknowledges that Buyer has the option to request an on-site water service inspection of the Property. BUYER WAIVES t.q3 THIS OPTION and agrees to the RELEASE set forth in paragraph 23 of this Agreement. 134 [] ELECTED 135 1. Buyer has the option, within days of the execution of this Agreement and at Buyer's expense, to deliver to Listing Broker, if any, t otherwise to Seller, a written inspection report by a qualified, professional water testing company of the quality and/or quantity of the on- site water service. 1 2. Seller agrees to locate and provide access to the on-site (or individual) water system, if applicable, at Seller's expense, if required by rite inspection company. 3. If the report reveals that the water service does not meet the minimum standards of any applicable goveromental authority and/or falls to 141 satisfy the requirements for quality and/or quantity as set by the lender, if any, then Seller will, within __ days of receipt of the report, notify Buyer in writing of Seller's choice to: 143 a. Upgrade the water service to the minimum acceptable levels, before settlement, in which case Buyer accepts the Property and 144 agrees to the RELEASE set forth in paragraph 23 of this Agreement, OR b. Not upgrade the water service. 4. If Seller chooses not to upgrade the service to minimum acceptable levels, or falls to respond within the time given, Buyer will, within 117 days, either: ~ ta a. Accept the Property and the water service and, if required by the lender, if any, and/or any governmental authority, upgrade the water service before seulement or Within the time required by the lender, if any, and/or any governmental authority, at Buyer's expense and with Seller's permission, which will not be unreasonably withheld, and agree to the RELEASE set forth in paragraph 23 of this t Agreement. If Seller denies Buyer permission to upgrade the water service, Buyer may, within 5 days of Seller's denial, terminate t this Agreement. If Buyer terminates this Agreement, all deposit monies paid on account of purchase price will be returned promptly to Buyer and this Agreement of Sale will be VOID, OR b. Terminate this Agreement, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer t and this Agreement of Sale will be VOID. [] (C) Buyer is aware that there is no developed water source for the Property. ON-SITE WATER SERVICE APPROVAL CONTINGENCY [] WAIVED. Buyer acknowledges that Buyer has the option to make this Agreement contingent on receiving municipal approval for the instal- t 59 lation of a well. BUYER WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 23 of this Agreement. Buyer initials~__ A/S-VL Page 2 of 6 Seller Iuitials: 16fi [] ELECTED. Within l0 days of the execution of this Agreement, Buyer will make a completed, written application for the municipal approval 15~ 1 ~ 7 for the installation of a well. This sale is contingent upon Buyer obtaining, within days of the execution of this Agreement, munjci- 18·l {68 pal approval for the installation of a well. Buyer will pay all costs associated with the application for approval, including but not limited to, tt~ any municipal fees and test expenses. In the event Buyer is unable to secure approval for well installation, Buyer will either: 1 ltl I. Accept the Property as is and agree to the RELEASE set forth in paragraph 23 of this Agreement, OR 170 !?~ 2. Terminate this Agreement of Sale, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer 1 ~1 t72 ~72 and this Agreement of Sale will be VOID. 173 9. STATUS OF SEWER (1-00) 174 i7~ (A) Seller represents that Property is served by: 17~ [] Off-Property Sewage Disposal System 1;'fi I'"l Individual On-Lot Sewage Disposal System (See Sewage Notice 1) t ?·1 [] Individual On-Lot Sewage Disposal Sysfem in Proximity to Well (See Sewage Notice 1; see Sewage Notice 4, if applicable) ~ 77 178 t18 [] Ten-acre Permit Exemption (See Sewage Notice 2) i73 ~ I~ ~ Holding Tank (See Sewage Notice 3) 188 1~0 None (See Sewage Notice 1) 181 [] None Available (See Sewage Notice 5 or Sewage Notice 6, as applicable) 183 (B) Connection to an off-Property sewage disposal system 1 g~. [] is not available for the Property. ~ 85 I~18 [] is available for the Property through (Name of Service Provider) 188 ~ ~§ PUBLIC SYSTEM CONTINGENCY la? [] WAIVED. Buyer acknowledges that Buyer has the option to make this Ag~ement contingent on receiving municipal approval for the con- t~? lf3~ nection of the Property to a sewage disposal system. BUYER WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 23 ~ ~3~ 1~9 of this Agreement. ~9o [] ELECTED. Within 10 days of the execution of this Agreement, Buyer will make a completed, written application for the municipal approval i ~ I for the connection of the Property to a sewage disposal system. Th s sale is contingent upon Buyer obtaining, within days of the exe- ~ ~ cution of this Agreement, municipal approval for the connection of the Prope~o' to a sewage disposal system. Buyer will pay all costs associ- 1~3 ated with the application for approval, including but not limited to, any municipal fees and test expenses. In the event Buyer is unable to secure ~ ~q4 approval for sewer connection, Buyer will either: ~ ~ 1. Accept the Property as is and agree to the RELEASE set forth in paragraph 23 of this Agreement, OR ~ i~i 2. Terminate this Agreement of Sale, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer 1 I? and this Agreement of Sale will be VOID. ~98 ~(C~. INDIVIDUAL ON-LOT SEWAGE DISPOSAL INSTALLATION CONTINGENCY laa ~r WAIVED. Buyer acknowledges that Buyer has the option to make this Agreement contingent on receiving all applicable government ZOO ..~'X approval for the installation of an individual sewage system· BUYER WAIVES THIS OPTION and agrees to the RELEASE set forth ~n para z0l graph 23 of this Agreement. ~2 202 [] ELECTED. Within I 0 days of the execution of this Agreement, 2~ [] Buyer ~4 [] Seller 205 will make a completed, written application to all appropriate authorities for the installation of an on-lot sewage disposal system, and will pay 206 all costs associated with the application for approval, including but not limited to, any fees and percolation test expenses. This sale is contin- 207 gent upon the receipt of all applicable government approval for the installation of an individual sewage system within days of the %'; 2~8 execution of this Agreement. In the event test results are unacceptable to Buyer or approval for an individual sewage system is unable to be ,'0~ secured, Buyer will either: ~: ~ 1. Accept the Property as is and agree to the RELEASE set forth in paragraph 23 of this Agreement, OR 2l 2t ~ 2. Terminate this Agreement of Sale, in which case all deposit monies paid on account of purchase price will be returned promptly to Buyer :: 2{~ and this Agreement of Sale will be VOID. Buyer will promptly deliver all information and test results acquired through the approval ;",2 213 y~3 process to Seller. ~,4 ~tD~ INDIVIDUAL ON-LOT SEWAGE DISPOSAL INSPECTION CONTINGENCY · 714 ~qs' ~ ,~ WAIVED. Buyer acknowledges that Buyer has the option to request an individual on-lot sewage disposal inspection of the Property. BUYER ~ ~'16 WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 23 of this Agreement. 717 [] ELECTED ?18 1. Buyer has the option, within days of the execution of this Agreement and at Buyer's expense, to deliver to Listing Broker, if any, ~'~ :¢ t§ otherwise to Seller, a written inspection report by a qualified, professional inspector of the individual on-lot sewage disposal system. ?~O 2. Seller agrees to locate and provide access to the individual on-lot sewage disposal system, and, if required by the inspection company, z~ empty the septic tank, at Seller's expense. Seller also agrees to restore the Property prior to settlement. ?22 3. If the report reveals defects that do not require expansion or replacement of the existing sewage disposal system, Seller will, within 2>'3 days of receipt of the report, notify Buyer in writing of Seller's choice to: ?23 ~:!4 a. Correct the defects before settlement, including retests, at Seller's expense, in which case Buyer accepts the Property and agrees to ~4 ;~5 the RELEASE set forth in paragraph 23 of this Agreement. ~2~ b. Not correct the defects, or if Seller fails to respond within the time given, Buyer will, within days, either: 227 1) Accept the Property and the system and, if required by the lender, if any, and/or any governmental authority, correct the ?27 ?28 defects before settlement or within the time required by the lender, if any, and/or any governmental authority, at Buyer's sole 22~ expense and with Seller's permission, which will not be unreasonably withheld, and agree to the RELEASE set forth in para- Z30 graph 23 of this Agreement. If Seller denies Buyer permission to correct the defects, Buyer may, within 5 days of Seller's denial, ;731 terminate this Agreement. If Buyer terminates this Agreement, all deposit monies paid on account of purchase price will be 231 ~32 retumed promptly to Buyer and this Agreement of Sale will be VOID, OR . 232 2:~3 2) Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned ;)34 promptly to Buyer and this Agreement of Sale will be VOID. 23~ 235 4. If the report reveals the need to expand or replace the existing individual on-lot sewage disposal system, Seller may, within days ?35 230 of receipt of the report, submit a corrective proposal to Selling Broker, if any, otherwise to Buyen The corrective proposal will include, 23'1 but not be limited to, the name of the remediation company; provisions for payment, including retests; and completion date for corrective 237 238 measures. Within 5 days of receiving Seller's con'ective proposal, or if no corrective proposal is received within the time given, Buyer 238 239 will: 239 2~0 a. Agree to the terms of the corrective proposal, if any, in writing, in which case Buyer accepts the Property and agrees to the 241 RELEASE set forth in paragraph 23 of this Agreement, OR 241 242 b. Accept the Property and the system and, if required by the lender, if any, and/or any govenunental authority, correct the defects 242 ~ ~ before senlement or within the time required by the lender, if any, and/or any govemmental authority, at Buyer's sole expense and 2~4 with Seller's permission, which will not be unreasonably withheld, and agree to the RELEASE set forth in paragraph 23 of this 2,4?. 245 Agreement. If Seller denies Buyer permission to correct the defects, Buyer may, within 5 days of Seller's denial, terminate this 246 Agreement. If Buyer terminates this Agreement, all deposit monies paid on account of purchase price will be retumed promptly to 248 247 Buyer and this Agreement of Sale will be VOID, OR 247 248 c. Terminate this Agreement in writing, in which case all deposit monies paid on account of purchase price will be returned promptly z49 to Buyer and this Agreement of Sale will be VOID. ZSO 10. ENVIRONMENTAL AUDIT & PROPERTY INSPECTIONS (1-~) 250 25~ (A) Seller represents and warrants that Seller has no knowledge, except as listed bel°w, °f whether: ~52 1. The Property has been contaminated by any substance in any manner which requires remediation; 252 z53 2. The Property contains any wetlands, flood plains, or any other environmentally sensitive areas, development of which is limited or pre- 253 254 eluded by law; 254 255 3. The Property contains any substance, the removal or disposal of which is subject to any law or regulation; 255 ~56 4. Any law has been violated in the handling or disposing of any material waste or the discharge of any material into the soil, air, surface 2'56 257 257 water, or ground water; 255 ~5~ 5. The Property contains underground fuel or liquid storage tanks. ?59 EXCEPTIONS: N- /'~ ~ ~ 260 260 261 262 264 Buyer Initials A/S-VL Page 3 of 6 Seller Initials: P ~- /). 264 263 (B) Seller and Buyer acknowledge that Broker: z115 1. Isa licensed mai estate broker; 2116 2. Is not an expert in construction, engineering, or environmental matters; and 267 3. Has not made and will not make any representations or warranties nor conduct investigations of the environmental condition or suita- Z68 bility of the Property, or any adjacent property. 2t~0 ENVIRONMENTAL AUDIT/INSPECTION CONTINGENCY 2'/0 WAIVED. Buyer understands that Buyer has the option to request audits and inspections of the Property. BUYER WAIVES THIS OPTIO.N 2it and agrees to the RELEASE set forth in paragraph 23 of this Agreement. Buyer reserves the right to make a pre-settlement inspection 6f the 2?2 Property. 2?:3 [] ELECTED. Within __ days of the execution of this Agreement, Buyer has the option, at Buyer's expense, to have the following audits 27,1 or inspections completed by a licensed or otherwise qualified professional: (check the inspections that Buyer will order) 2711 [] Environmental Hazards 2711 [] Underground Storage Tanks 2?? [] Property Boundary/Square Footage Verification/Delineation 2711 [] Flood Plain Verification/Delineation 2?9 [] Wetlands Verification/Delineation a111 [] Specific Property Inspection limited to 281 2t~:3 If Buyer is not satisfied with any condition as stated in any written report Buyer receives pursuant to the audits or inspections obtained under 253 284 this provision, Buyer will, within the time allotted for obtaining such audits or inspections: 285 1. Accept the Property with the information stated in the report(s) and agree to the RELEASE set forth in paragraph 23 of this Agreement, ;7115 296 OR 21111 28t 2. Terminate the Agreement of Sale in writing, in which case ail deposit monies paid on account of pumhase price will be returned promptly 251 281t to Buyer and this Agreement of Sale will be VOID. 2811 280 11. NOTICES & ASSESSMENTS (1-00) :?~l~ (A) Seller represents as of Seller's execution of this Agreement, that no public improvement and/or homeowner association assessments have been ~ made against the Property which remain unpaid and that no notice by any govemment or public authority has been served upon Seller or any- ~.02 one on Seller's behalf, including notices relating to violations of zoning, housing, building, safety or tim ordinances which remain uncorrected, ;?93 and that Seller knows of no conditioq that would constitute violation of any such ordinances which remain uncorrected, unless otherwise spec- 294 ified hem: ~ 13 q~'-~ ' 295 295 (B) Seller knows of no other potential notices (including violations) and assessments except as follows: N O iA, '~, 295 206 201 (C) In the event any notices (including violations) and assessments are received after execution of this Agreement and before settlement, Seller will 2~ notify Buyer in writing within 5 days of receiving the notice or assessment that Seller will: 208 200 1. Comply with notices and assessments at Seller's expense, in which case Buyer accepts the Property and agrees to the RELEASE set forth 209 300 in paragraph 23 of this Agreement. 300 ~01 2. NOT comply with notices and assessments at Seller's expense, in which case Buyer will notify Seller within 5 days in writing that Buyer 302 will: afl2 303 a. Comply with the notices and assessments at Buyer's expense and agree to the RELEASE set forth in paragraph 23 of this Agreement, 303 304 OR 304 305 b. Terminate this Agreement, in which case ail deposit monies paid on account of purchase price will be returned promptly to Buyer :306 and this Agreement of Sale will be VOID. :31111 89? If Buyer fails to notify Seller within the time given, Buyer accepts the Property and agrees to the RELEASE set forth in paragraph 23 of 301 3o8 this Agreement. 358 300 (D) Buyer is advised that access to a public road may require issuance of a highway occupancy permit from the Pennsylvania Department of 3110 :tlU Transportation or appropriate authority. 310 3~ 12. TITLE, SURVEYS, & COSTS (1-00) ~ (A) The Property is to be conveyed free and clear of all liens, encumbrances, and easements, EXCEPTING HOWEVER the following: existing 3~3 deed restrictions, historic preservation restrictions or ordinances, building restrictions, ordinances, easements of roads, easements visible upon a I~ the ground, easements of record, privileges or rights of public service companies, if any; otherwise the title to the above described mai estate 31~ will be good and marketable and such as will be insured by a reputable Title Insurance Company at the regular rates. 3~ (B) In the event Seller is unable to give a good and marketable title and such as will be insured by a reputable Title Company at the regular rates, ~ ? as specified in paragraph 12(A), Buyer will have the option of taking such title as Seller can give without changing the price or of being repaid ~ ? 3 ~* all monies paid by Buyer to Seller on account of the purchase price and Seller will reimburse Buyer for any costs incurred by Buyer for those 5 t~ items specified in paragraph 12(C) and in paragraph 12(D) items (l), (2), (3); and in the latter event them will be no further liability or obli- ,~ :~11 gation on either of the parties hereto and this Agreement will become VOID. ~;?~ (C) Any survey or surveys which may be required by the Title Insurance Company or the abstracting attorney, for the preparation of an adequate 32t 322 legal description of the Property (or the correction themo0, will be secured and paid for by Seller. However, any survey or surveys desired by 322 323 Buyer or required by lender will be secured and paid for by Buyer. 32:3 324 (D) Buyer will pay for the following: 324 aZ.5 1. The premium for mechanics lien insurance and/or title search, or fee for cancellation of same, if any; 325 ~26 2. The premiums for flood insurance and/or tim insurance with extended coverage, insurance binder charges or cancellation fee, if any; 327 3. Appraisal fees and charges paid in advance to lender, if any; 327 328 4. Buyer's customary settlement costs and accruals. 328 320 13. ZONING CLASSIFICATION (1-~8) ~ | / ~29 330 (n) Zoning Classification: ]'~ ~ '.~ ~ ~': L,L /- ~--~ ¥' ~=~ 3311 aal Failure of this Agreement to contain the~iloning classification (except in cases where the property land each parcel thereof, if subdividable } is 332 zoned solely or primarily to permit single-family dwellings) will render this Agreement voidable at the option of the Buyer, and, if voided, any 332 338 deposits tendered by Buyer will be returned to Buyer without any requirement for court action. 333 384 (B) ZONING APPROVAL CONTINGENCY 334 33~5 J~ / NOT APPLICABLE. 385 a:36 ~ WAIVED. Buyer acknowledges that Buyer has the option to make this Agreement contingent on receiving municipal approval for the 3311 337 ' ~ intended use of the Property. BUYER WAIVES THIS OPTION and agrees to the RELEASE set forth in paragraph 23 of this Agreement. 3:37 338 [] ELECTED. aaa aa0 1. This sale is contingent on Buyer receiving zoning approval, or variance, or special exception from ~4~ (municipality) to use the Property as a (proposed use). 341 2: Application for the approval (or variance/special exception) will be made within days of the execution of this Agreement of Sale. 341 2~) Buyer will pay for applications, legal representation, and any other costs associated with obtaining approval. 341' 34:3 3. If the municipality requires the application to be signed by the current owner, Seller agrees to do so. 343 M4 4. If final, unappealable approval is not obtained by , this Agreement of Sale will be 344 345 VOID, in which case all deposit monies paid on account of purchase price will be retumed promptly to Buyer. 346 14. LAND,~SE RESTRICTIONS OTHER THAN ZONING (1-98) :t47 (A)~ None Known 'aa? 3~8 (B)' [] ' The Property, or a portion of it, is pmferentiaily assessed for tax purposes under the Following Acts (See Land Use Restrictions Notices): 340 [] Farmland and Forest Land Assessment Act (Clean and Green Program) 349 350 [] Open Space Act (an Act enabling certain counties of the Commonwealth to covenant with land owners for preservation of land in 350 351 farm, forest, water supply, or open space uses) 3sz [] Other 352 35:3 [] Buyer and Seller have determined the consequences that may result from the sale or a change in the use of the Property, or any portion 353 3§4 of it. 354 aSS (C) [] Seller has no knowledge of any covenants, subdivision restrictions or other restrictions affecting the Property unless otherwise stated here: 3,55 (D) [] Seller has no knowledge of any rights to timber, crops or minerals, except coal, that do not transfer with the Property unless otherwise 35 ? stated here: 35~ 357 358 3~9 (E) [] Buyer acknowledges that any land use restrictions associated with the Property's enrollment in the Clean and Green Program or under the ~;; Open Space Act or any other program identified in this paragraph 14, are encumbrances upon the Property. Buyer agrees that delivery of ~ title s~c~o~e encumbrances will not violate Seller's duty under paragraph 12(A) of this Agreement. /-~ /) 3~8 Buyer lnitials.~ A/S-VL Page 4 of 6 Seller Initials: f' . 364 3~.4 15. ~CO~k.L NOTICE 365 ~ NOT APPLICABLE 365 366 [2]' APPLICABLE 366 361 THIS DOCUMENT MAY NOT SELL, CONVEY, TRANSFER, INCLUDE OR INSURE THE TITLE TO THE COAL AND RIGHTS OF SUPPORT UNDERNEATH THE SURFACE LAND 3~ 3fi8 DESCRIBED OR REFERRED TO HEREIN, AND THE OWNER OR OWNERS OF SUCH COAL MAY HAVE THE COMPLETE LEGAL RIGHT TO REMOVE ALL SUCH COAL AND 3611 369 IN THAT CONNECTION, DAMAGE MAY RESULT TO THE SURFACE OF THE LAND AND ANY HOUSE, BUILDING OR OTHER STRUCTURE ON OR IN SUCH L,~d~rD, (This 369 370 notice is set forth in the manner provided in Section 1 of the Act of July 17, 1957, P.L. 984.) "Buyer acknowledges that he may not be obtaining the 3 l0 371 right of protection against subsidence resulting from coal mining operations, and that the property described herein may be protected from damfige 371 372 due to mine subsidence by a private contract with the owners of the economic interests in the coal. This acknowledgment is made for the purpose 372 3/3 of complying with the provisions of Section 14 of the Bituminous Mine Subsidence and the Land Conservation Act of April 27, 1966." Buyer agrees 3?3 3'/4 3/4 to sign the deed from Seller which deed will contain the aforesaid provision. 315 37§ 16. POSSESSION (1-98) 316 (A) Possession is to be delivered by deed, keys (if any) and: 317 1. Physical possession to a vacant building (if any) broom-clean, free of debris at day and time of settlement, AND/OR :t7'1 370 2. Assignment of existing lease(s), together with any security deposits and interest, at time of settlement, if Property is tenam-occupied at 3;~ the execution of this Agreement or unless otherwise specified herein. Buyer will acknowledge existing lease(s) by initialing said lease(s) 380 at time of signing of this Agreement of Sale, if Property is tenant-occupied. 380 38~ (B) Seller will not enter into any new leases, written extension of existing leases, if any, or additional leases for the Property without expressed 3 ~ 3~2 written consent of Buyer. 9~,3 17. RECORDING {3-B~) This Agreement will not be recorded in the Office for the Recording of Deeds or in any other office or place of public ~ record, and if Buyer causes or permits this Agreement to be recorded, Seller may elect to treat such act as a breach of this Agreement. ~ 18. ASSIGNMENT {~.85) This Agreement shall be binding upon the parties, their respective heirs, personal representatives, guardians and succes- '~5 a~ sots, and to the extent assignable, on the assigns of the parties hereto, it being expressly understood, however, that Buyer will not transfer or assign 3~? this Agreement without the written consent of Seller. 9~a 19. DEPOSIT & RECOVERY FUND :~; (A) Deposits paid by Buyer within 30 days of settlement will be by cash, cashier's or certified check. Deposits, regardless of the form of payment 3~}~ and the person designated as payee, will be paid to Broker or party identified in paragraph 3(F), who will retain them in an escrow account ~ until consummation or termination of this Agreement in conformity with all applicable laws and regulations. Any uncashed check tendered as 9~ :~2 deposit may be held pending the acceptance of this offer. ~3 (B) In the event of a dispute over entitlement to deposit monies, a broker holding the deposit is required by the Rules and Regulations of the State 3~,1 Real Estate Commission (49 Pa. Code §35.327) to retain the monies in escrow until the dispute is resolved. In the event of litigation for the 391 :~95 return of deposit monies, a broker will distribute the monies as directed by a final order of court or the written Agreement of the parties. Buyer t 3% and Seller agree that, in the event any broker or affiliated licensee is joined in litigation for the retum of deposit monies, the attorneys' fees and 39n ~,~: costs of the broker(s) and licensee(s) will be paid by the party joining them. a~.~a (C) A Real Estate Recovery Fund exists to reimburse any persons who have obtained a final civil judgment against a Pennsylvania real estate :~ aaa licensee owing to fraud, misrepresentation, or deceit in a real estate transactaon and who have been unable to collect the judgment after exhaust 400 ing all legal and equitable remedies. For complete details about the Fund, call (717) 783-3658, or 1-800-822-2113 (within Pennsylvania) and 4~1 (717) 7834854 (outside Pennsylvania). ONLY (1-00) 4~2 20, ~PL~NNED COMMUNITY (HOMEOWNER ASSOCIATION) NOTICE FOR PURPOSES OF RESALE ~,'~3 .~ NOT APPLICABLE 404 '- []' APPLICABLE ~0,5 (A) Buyer acknowledges that the Property is part of a planned community as defined by the Uniform Planned Community Act. (See Definition of ,:t}~. Planned Community Notice for the definition contained in the Act.) att ~ (B) §5407(a) of the Act requires Seller to furnish Buyer with a copy of the Declaration (other than plats and plans), the bylaws, the roles and reg- ~0~ ulations of the association, and a Certificate containing the provisions set forth in §5407(a) of the Act. ~ (C) Within days of the execution of this Agreement, Seller will submit a request to the association for a Certificate and the documents ~ i o necessary to enable Seller to comply with the Act. The Act provides that the association is required to provide these documents within 10 days 41 ~11 of Seller's request. ~; ~ ~ ~ (D) Under the Act, Seller is not liable to Buyer for the failure or delay of the association to provide the Certificate in a timely manner, nor is Seller 1 9~3 liable to Buyer for any erroneous information provided by the Association and included in the Certificate. ~ 3 4I ~ (E) Buyer may declare the Agreement of Sale VOID at any time before Buyer's receipt of the association documents and for 5 days thereafter, OR 4~ 4 415 until settlement, whichever occurs first. Buyer's notice declaring the Agreement void must be in writing; thereafter all deposit monies will be 41 t~( retumed to Buyer. ~ 417 (F) In the event the association has the right to buy the Property (right of first refusal), and the association exercises that right, Seller will reim- 4t7 ~i~; burse Buyer for all monies paid by Buyer on account of purchase price and for any costs incurred by Buyer for: (1) The premium for mechan- 4 4t9 its lien insurance and/or title search, or fee for cancellation of same, if any; (2) The premium for flood insurance and/or fire insurance with 420 extended coverage, insurance binder charges or cancellation fee, if any; (3) Appraisal fees and charges paid in advance to mortgage lender, if ,t~ any; (4) Buyer's customary settlement costs and accruals. 422 ,~:,2 21. MAINTENANCE & RISK OF LOSS {1 ~20 (A) Seller will maintain the Property, grounds, fixtures, and any personal property specifically scheduled herein in its present condition, normal 4~,1 wear and tear excepted. 026 (B) In the event any system or appliance included in the sale of the Property fails and Seller does not repair or replace the item, Seller will promptly 4.Z~ notify Buyer in writing of Seller's choice to: ~1;:1 1. Repair or replace the failed system or appliance before settlement, or credit Buyer at settlement for the fair market value of the failed 42~ system or appliance (this option must be acceptable to the lender, if any). In each case, Buyer accepts the Property and agrees to the 429 RELEASE set forth in paragraph 23 of this Agreement, OR 430 2. Make no repairs or replacements and not credit the Buyer at settlement for the fair market value of the failed system or appliance, in which 431 case Buyer will notify Seller in writing within 5 days or before settlement, whichever is sooner, that Buyer will: 432 a. Accept the Property and agree to the RELEASE set forth in paragraph 23 of this Agreement, OR 432 133 b. Terminate this Agreement, in which case all deposit monies paid on account of purchase price will be retumed promptly to Buyer ~!34 and this Agreement of Sale will be VOID. 4.14 43s (C) Seller will bear risk of loss from fire or other casualties until time of settlement. In the event of damage by fire or other casualties to any prop- ~3~ erty included in this sale that is not repaired or replaced prior to settlement, Buyer will have the option of rescinding this Agreemeut and 436 432 promptly receiving all monies paid on account of purchase price or of accepting the Property in its then condition together with the proceeds ,138 of any insurance recovery obtainable by Seller. Buyer is hereby notified that Buyer may insure Buyer's equitable interest in this Property as of 43~ the time of execution of this Agreement. 446 22. WAIVER OF CONTINGENCIES (1-00) ~ ~ In the event this Agreement is contingent on Buyer's right to inspect and/or repair the Property, Buyer's failure to exerdse any of Buyer's options ,;i· within the time limits specified in the contingency provision(s) will constitute a WAIVER of that contingency and Buyer accepts the Property aa~ and agrees to the RELEASE set forth in paragraph 23 of this Agreement. ~: 23. RELEASE (~-00) - Buyer hereby releases, quit claims and forever discharges SELLER, ALL BROKERS, their LICENSEES, EMPLOY- ~,~ EES, and any OFFICER or PARTNER of any one of them and any other PERSON, FIRM, or CORPORATION who may be liable by or ~,l~i through them, from any and all claims, losses or demands, including, but not limited to, personal injuries and property damage and all of 447 the consequences thereof, whether now known or not, which may arise from the presence of environmental hazards, any deficiencies in the 440 on-site water service system, or any defects or conditions on the Property. This release will survive settlement. 449 24. REPRESENTATIONS 04)0) 45o (A) Buyer understands that any representations, claims, advertising, promotional activities, brochures or plans of any kind made by Seller, Brokers, their licensees, employees, officers, or partners are not a part of this Agreement, unless expressly incorporated or stated in this Agreement. (B) It is understood that Buyer has inspected the Property before signing this Agreement of Sale (including fixtures and any personal prop- erty specifically scheduled herein), or has waived the right to do so, and has agreed to purchase it in its present condition unless other- wise stated in this Agreement. Buyer acknowledges that Brokers, their licensees, employees, officers, or partners have not made an independent examination or determination of the structural soundness of the Property, the age or condition of the components, envi- ronmcotai conditions, the permitted uses, or of conditions existing in the locale where the Property is situated; nor have they made a mechanical inspection of any of the systems contained therein. 4§2 Buyer Initials.'~ A/S-VL Page 5 of 6 Seller InitiaiJ~'~d' ~-') 4§a (C) It is further understood that this Agreement contains the whole agreement between Seller and Buyer and there are no other terms, obligations, 4~ covenants, representations, statements or conditions, oral or otherwise of any kind whatsoever concerning this sale. Furthermore, this Agree- 46,4 013~ ment will not be altered, amended, changed, or modified except in writing executed by the parties. 41313 413§ (D) The headings, captions, and line numbers in this Agreement are meant only to make it easier to find the paragraphs. ~13'/ 25. TIME OF THE ESSENCE-DEFAULT {1-00) 4§5 The said time for settlement and all other times referred to for the performance of any of the obligations of this Agreement are hereby agreed to be 466 469 of the essence of this Agreement. For the purposes of this Agreement, number of days will be counted from the date of execution, by excludi.ng the 4139 470 day this Agreement was executed and including the last day of the time period. Should Buyer: 470 a~1 (A) Fail to make any additional payments as specified in paragraph 3; OR 471 ,:75 (B) Furnish false or incomplete information to Seller, Listing Broker, Selling Broker, or the lender, if any, conceming Buyer's legal or financial 4?2 ~13 status, or fail to cooperate in the processing of the financing application, which acts would result in the failure to obtain the approval of a financ- 414 ing commitment; OR 474 47~ (C) Violate or fail to fulfill and perform any other terms or conditions of this Agreement; 4t13 then in such case, Seller has the option of retaining ail sums paid by Buyer, including the deposit monies, 1) on account of purchase 41~ price, or 2) as monies to be applied to Seller's damages, or 3) as liquidated damages for such breach, as Seller may elect, unless 4?? 47~ ot, o~erwise checked below. 4 ~ ,~% Seller is limited to retaining sums paid by Buyer, including deposit monies, as liquidated damages. 450 If Seller elects to retain all sums paid by Buyer, including deposit monies, as liquida~d damages, Buyer and Seller will be released from 4130 48~ further liability or obligation and this Agreement will be VOID. 481 08~ 26. BROKERS CI-00} The Business Relationships between the Broker(s) and Seller and Buyer are as follows, UNLESS a different relationship is 483 checked below. 483 484 (A) The Listing Broker is Agent for Seller. 4§4 41~13 (B) The Selling Broker is Agent for Buyer. 4~5 4~t~ (C) When the Listing Broker and Selling Broker are the same, the Broker is a Dual Agent. Dual Agency applies to all licensees, UNLESS there is 455 a~! a Designated Agent for Seller and a Designated Agent for Buyer. If the same Licensee is designated for Seller and Buyer, the Licensee is a aaa Dual Agent. 4813 46~ A Business Relationship exists that is different from above, as follows: ~5 [] The Selling Broker is the AgenqSubagent for Seller. 491 [] The Selling Broker is a Transaction Licensee. 492 [] The Listing Broker is a Transaction Licensee. 493 (D) Broker(s) may perform services to assist unrepresented parties in complying with the terms of this Agreement. 493 494 27. MEDIATION (7-9fl) 495 [] NOT AVAILABLE 4~13 [] WAIVED. Buyer and Seller understand that they may choose to mediate at a later date, should a dispute arise, but that there will be no ob- 496 ~§? ~_/ligafion on the part of any party to do so. 4~ ~[~ ELECTED 49.q - (A)" Buyer and Seller will try to resolve any dispute or claim that may arise from this Agreement of Sale through mediation, in accordance with the §90 Rules and Procedures of the Home Sellers/Home Buyers Dispute Resolution System. Any agreement reached through a mediation conference sO1 and signed by the parties will be binding. 50~ (B) Buyer and Seller acknowledge that they have received, read, and understand the Rules and Procedures of the Home Sellers/Home Buyers 503 Dispute Resolution System. (See Mediation Notice.) 503 so4 (C) This agreement to mediate disputes arising from this Agreement will survive settlement. 50S 506 Buyer and Seller acknowledge that they have read and understand the notices and explanatory information set forth in this Agreement. 50l 50~ Buyer acknowledges receiving a copy of this Agreement at the time of signing. 509 559 5~0 512 5t4 545 519 BUYER DATE 5~6 SS # NOTICE TO PARTIES: WHEN SIGNED, THIS AGREEMENT IS A BINDING CONTRACT. Return by facsimile transmission (FAX) of this 51 Agreement of Sale, and all addenda, bearing the signatures of all parties, constitutes acceptance of this Agreement. Parties to this transaction are advised to consult an attorney before signing if they desire legal advice. WITNESS '~e~~ )rff, ~UYER ~ DATE Buyer Name (print) C-s.' t ~ ~ ~,,x J'~ ~. ~,.~ t,,'~ ,eL ~,'I ~ / SS# t.~2_'-IO IlS'Y''~ MallingAddress ~.;Z- H~_~'t~ ~.~ U'~ I'~,~.-t~u~-ln ~,~ff~r-ei /~ ~- ~ ~Y~f~'~ ' Phone #s ~r0 ~' ~., { _'~ t ~ {D ~ ~ FAX # - -- '4 E-Mail WITNESS Buyer Name (print) Mailing Address 5i2 514 515 516 517 518 1319 520 521 Phone #s FAX # E-Mail 622 WITNESS BUYER DATE 524 Buyer Name (prin0 SS # 525 Mailing Address Phone #s FAX # E-Mail 5z7 520 Seller hereby approves the above contract this (date) 529 and in consideration of the services rendered in procuring the Buyer, Seller agrees to pay the named Listing Broker a fee of ~ 530 of/from the,.,he,~rein specified sale p.~c.e.~n_~.e even~ Buy.~lef..~uflts hereunder, any monies paid on account will be divided -~ ~'.~t~ _ Seller. '~-~ -~..o Llsfi)a~)}~oker~,t~6~.,b~ml~ will the sum p~d ~o)the List~g Broker .be in'exeess of the above specified Br~er's f~.. s t' · ~.~. /'E Z ' DATE Seller Name (print) .~:~/¥'~Z~. ~-: p('¢~.. .... ' S~#I qL~ /.z~ i ~-A / -/ - 535 Phone #s '2 12/ ~ /_ g./'7 ~-"' FAX # - ' E-Mail 531 WITNESS SELLER DATE Seller Name (print) SS # 1340 Mailing Address Phone #s FAX # E-Mail. 54~ 543 WITNESS SELLER DATE 544 Seller Name (print) SS # 545 Mailing Address 546 Phone gs FAX # E-Mall The undersigned' [] Listing Broker [] Selling Broker agree.to submit to mediation__ in accordance with paragraph 27 of this Agw~ement. ACCEPTEDBY ~x "~ff /..,./~ /~"~a , , DATE SELLING BRO~R (C.~y ia~~~ ~~ ~ MS-VL P~e 6 of 6 547 540 549 555 551 552 553 ,554 555 556 557 558 559 560 SELLER'S COPY EXHIBIT B STATEMENT OF ESTIMATED SELLER'S COSTS Date Prepared: ~'~--~,/~ ~)~/ Seller: ~.~_/ ~-i~)/(~' Type Loan: Property: Sale Price: /~, Z~ 0 lO Mortgage Amount: The following ESTIMATE is given so that the Sellers will understand approximately what costs will be deducted from the Gross Sale Price at the time of settlement: %T erT x ........................................................................ 2. 3. Notary Fees .............................................................................. $ 4. Deed Preparation ....................................................................... $ ,/0 O 5. Radon Certification ..................................................................... $ 6. Wood Infestation Inspection ......................................................... $ 7. Private On-Lot Sewage System Inspection .....................................$ 8. Water Analysis Report ................................................................ $ 9. Roof Certification ....................................................................... $ 10. Home Warranty Program ............................................................ $ 11. Home Inspection Fee ................................................................. $ 12. Buyers Closing Costs ................................................................. $ 13. Mortgage Discount of Plaeemcnt Fee ( % of mortgage amoun0 ........................................... $ 14. Settlement or Disbursement Fee ................................................... $ 15. FHA/VA Fees ($400 average - Fees va~ according to lender*) ............ $ 16. Transaction?ee ............................................... ~ ....... ..Z ............ t I~ 100.00 TOTAL ESTI]VlATED SELL~G EXPENSES ............................................. $ *Above estimate includes a total of average fees for one FHA/VA lmpeetion, Flood Cerlification, Tax Service Fee, Notm'y and Miscellaneous fee,. Total deductions at ,s~[~ont are estimated as follows: $ ~'~_ ~ Estimated Selling Expenses $ tga~_.) e~O Estimate Payoff First Mortgage $ ~ .~ _, Estimate PayoffAdditiona! Mortgage/Liens $ J('.~ .Cq't~' ~pTOTAL ESTIMATED DEDUCTIONS $ //I ~ , ~ 0 0,, Gross Sale Priee $ ' o~'"~r ~ ~, Less Total Estimated Dedu~ions $ ~?/~, ,/.¥ff EstimatedProeeedsatSettiement The above figures include payoff information provided by Sellers, and may not include payoff of all liens, encumbrances, property taxes or special assessments. All payoffs aod/or release of existing mortgages and lieas will bo deducted from your proeeeds at serdement. l/We acknowledge receipt of a copy of this Statement of Estimated Seller's Costs, and undemland and agree to the above estimated charges/ /~ /? Rev. 11/00 (Seller) .(Seller) (Sener) EXHIBIT C 3Ol mlO2L202L~,2m: hS:~'"L65hh 011' 2257 / ~: ~O 2 ~OONOO~: VERIFICATION I verify that the statements made in the foregoing Complaint are true and correct. I understand that false statements herein are made subject to the penalties of 18 Pa.C.S. ~4904 relating to unsworn falsification to authorities. SHERIFF'S RETURN - REGULAR CASE NO: 2002-01221 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND HERMAN GLENN VS DICK PAUL E BRIAN BARRICK , Sheriff or Deputy Sheriff of Cumberland County, Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT - EQUITY was served upon DICK PAUL E the DEFENDANT , at 1053:00 HOURS, on the 14th day of March , 2002 at 1100 ENOLA ROAD CARLISLE, PA 17013 by handing to PAUL E DICK a true and attested copy of COMPLAINT - EQUITY together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: Docketing 18.00 Service 3.45 Affidavit .00 Surcharge 10.00 .00 31.45 Sworn and Subscribed to before me this ~ ~ day of ~r6thonotary , So Answers: R. Thomas Kline 03/15/2002// ~ /~ JAMES M ROBINSONA GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA .. NO. 02 - 1221 CIVIL TERM ._ CIVIL ACTION - EQUITY : JURY TRIAL DEMANDED pRELIMINARY OBJECTIONS OF DEFENDANT TO PLAINTIFF'S COMPLAINT AND NOW this 19th day of April, 2001, comes the Defendant, PAUL E. DICK, by and through his attorneys, Irwin, McKnight & Hughes, and makes the following Preliminary Objections to Plaintiff's Complaint, and in support thereof avers the following: I. Preliminary Objection for Failure of a Pleading to Conform to Law or Rule of Court Pursuant to Pa. R.Civ. P. 1028(a)(2) 1. Plaintiff, Glenn Herman, filed a civil complaint on or about March 12, 2002 against Defendant Paul E. Dick in the Court of Common Pleas of Cumberland County, Pennsylvania at Docket No. 2002 - 1221, alleging causes of action for specific performance and breach of contract. 2. The dispute involves a purported Agreement of Sale for the purchase of property owned by Defendant. 3. Pa.R.Civ.P. No. 1508 states that a Plaintiff "may state in kis complaint two or more causes of action cognizable in equity." 4. Generally no authority is conferred to join a legal cause of action with an equitable cause of action in the same complaint. 14 Standard Pennsylvania Practice, 2d§ 80:10. 5. Plaintiff's Complaint pleads concurrently both a cause of action in equity, specific performance, with a cause of action at law, breach of contract. 6. Plaintiff's pleading fails to conform to the above cited Rules of Court. WHEREFORE, Defendant Paul E. Dick respectfully requests this Honorable Court to dismiss Plaintiff's cause of action for breach of contract. II. Preliminary Objection in the Nature of a Demurrer Pursuant to Pa. R.Civ. P. 1028(a)(4). 7. In Paragraph 23 of Plaintiff's Complaint, he states that he intended to subdivide the subject property following purchase and that he stands to lose any profit on the sale of the subdivided lots "which profit he estimates to be $100,000." 8. The purported Agreement of Sale does not make any reference to Plaintiff's stated intention to further subdivide the property upon purchase, nor does Plaintiff allege that he ever conveyed said intention to Defendant. 9. Plaintiff's Complaint fails to state any cause of action against Defendant upon which relief may be granted for recovery of purported lost profits, because Plaintiff does not allege that subsequent subdivision was within the contemplation of the parties and such damages are not the type of injuries which are typically recoverable as a matter of law in a breach of contract action. 2 WHEREFORE, Defendant Paul E. Dick respectfully requests this Honorable Court to dismiss Plaintiff's Complaint with regard to recovery of alleged lost profits by Plaintiff. III. Preliminary Objection Raising Insufficient Specificity of Plaintiff's Complaint Pursuant to Pa. R. Civ. P. 1028(a)(3). 10. Plaintiff's Complaint fails to allege with sufficient particularity that the purported Agreement of Sale makes any reference to Plaintiff's stated intention to further subdivide the property upon purchase. 11. Plaintiff's Complaint fails to allege with sufficient particularity that Plaintiff ever conveyed an intention to Defendant to further subdivide the property upon purchase. 12. Plaintiff's Complaint fails to allege with sufficient particularity any support for the estimated amount of lost profits from further subdivision. WHEREFORE, Defendant Paul E. Dick respectfully requests this Honorable Court to dismiss Plaintiff's Complaint with regard to recovery of alleged lost profits by Plaintiff. Dated: April 19, 2002 By: Respectfully Submitted, IRWIN, McKNIGHT & HUGHES Douglas t~lV~iller, Esquire - -- Supreme C~urt ID # 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013 (717) 249-2353 Attorney for Defendant, Paul E. Dick GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02 - 1221 CIVIL TERM : CIVIL ACTION - EQUITY : JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Douglas G. Miller, Esquire, do hereby certify that I have served a true and correct copy of the foregoing document upon the persons indicated below by fLrst class United States mail, postage paid in Carlisle, Pennsylvania 17013, on the date set forth below: James M. Robinson, Esquire 28 South Pitt Street Carlisle, PA 17013 Attorney for Plaintiff Date: April 19, 2002 IRWIN, McKNIGHT & HUGHES Douglas (~Miller~ lgsqulre - Supreme C~urt I.D. No. 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013-3222 (717) 249-2353 Attorney for Defendant, Paul E. Dick GLENN HERMAN, PAUL E. DICK, Plaintiff V, Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02-1221 CIVIL TERM : ClIVIL ACTION - EQUITY ANSWER TO PRELIMINARY OBJECTIONS Plaintiff, Glenn Herman, by and through his attorneys, Turo Law Offices, respectfully submits the following answer to the preliminary objections to his complaint filed by the Defendant, Paul E. Dick. 1. Admitted. 2. Admitted. 3. Admitted. By way of further answer, although Plaintiff admits that the text of the rule is properly quoted, it should be noted that the rule does not expressly prohibit joining a legal cause of action with a cause of action in equity. 4. Denied. By way of further answer, the source quoted by Defendant in this averment specifically states, "where the plaintiffs specify that the primary relief which they seek is equitable, even though they seek damages in the alternative, an objection based on misjoinder of causes of action will be dismissed by the court." 14 Standard Pennsylvania Practice, 2d § 80:10. 5. Admitted. 6. The averments contained in paragraph 6 state a legal conclusion to which no responsive pleading is required. To the extent that a response is required, such averments are denied. WHEREFORE, for all the reasons set forth above, the Plaintiff, Glenn Herman, requests judgment in his favor and respectfully requests this Honorable Court to deny the Defendant's Preliminary Objection. 7. Admitted 8. Admitted. By way of further answer, the matter of subdividing the properbj was discussed in the presence of the Defendant. The discussion was initiated with Larry Neidlinger as a result of Defendant's discussions about subdividing the portion of the property on which his house and barn were located (as handwritten on the Agreement of Sale). The further subdivision of the property by the Plaintiff was made necessary by Defendant's insistence that Plaintiff agree to allow an existing mobile home to remain on the property. See Exhibit A to Complaint, page 1. 9. The averments contained in paragraph 9 state a legal conclusion to which no responsive pleading is required. To the extent that a response is required, such averments are denied. WHEREFORE, for all the reasons set forth above, the Plaintiff, Glenn Herman, requests judgment in his favor and respectfully requests this Honorable Court to deny the Defendant's Preliminary Objection. 10. The averments contained in paragraph10 state a legal conclusion to which no responsive pleading is required. To the extent that a response is required, such averments are denied. 11. The averments contained in paragraph 11 state a legal conclusion to which no responsive pleading is required. To the extent that a response is required, such averments are denied. 12. The averments contained in paragraph 12 state a legal conclusion to which no responsive pleading is required. To the extent that a response is required, such averments are denied. WHEREFORE, for all the reasons set forth above, the Plaintiff, Glenn Herman, requests judgment in his favor and respectfully requests this Honorable Court to deny the Defendant's Preliminary Objection. Respectfully Submitted TURO LAW OFFICES Ja~s M. Robeson, Esquire 28~South Pitt~Street Carlisle, PA 17013 (717) 245-9688 Attorney for Plaintiff CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the Plaintiff's Answer to Preliminary Objections upon Douglas D. Miller, Esquire, by depositing same in the United States Mail, first class, postage pre-paid on the 6th day of May, 2002, from Carlisle, Pennsylvania, addressed as follows: Douglas D. Miller, Esquire Irwin, McKnight & Hughes West Por~fret Professional Building 60 West Pomfret Street Carlisle, PA 17013 TURO LAW OFFICES J~l~s M. Robinson, Esquire 28~South Pitt treet Carlisle, PA ~'r~{13 (717) 245-9688 Attorney for Plaintiff 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. CAPTION OF CASE (entire caption must be stated in full) Glenn Herman vs. (Plaintiff) Paul E. Dick (Defendant) No. 02-1221 Civil Term 2002 Dated: State matter to be argued defendant's demurrer to complaint, etc.): Defendant's Preliminary Objections Identify counsel who will argue case: (a) for plaintiff: Address: (b) for defendant: Address: (i.e., plaintiff's motion for new trial, James M. Robinson, Esquire 28 South Pitt St. Carlisle, PA 17013 Douglas G. Miller, Esquire 60 West Pomfret St. Carlisle, PA 17013 I will notify all parties in writing within two days that this case has been listed for argument. Argument Court Date: July 24, 2002 May 7, 2002 ttorne/f0r Plaintiff GLENN HERMAN, PLAINTIFF · IN THE COURT OF COMMON PLEAS OF · CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT 02-1221 EQUITY TERM IN RE: PRELIMINARY OBJECTIONS OF DEFENDANT AND NOW, this defendant to plaintiff's complaint, ARE DISMISSED. TO PLAINTIFF'S COMPLAINT BEFORE BAYLEY, J. AND GUIDO, J. ORDER OF COURT ~/'7. day of August, 2002, the preliminary objections of f James M. Robinson, Esquire For Plaintiff ~FoOUglas G. Miller, Esquire r Defendant Edgar B. 15'ay~y,.J :saa GLENN HERMAN, PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT IN RE: : 02-1221 EQUITY TERM PRELIMINARY OBJECTIONS OF DEFENDANT TO PLAINTIFF'S COMPLAINT BEFORE BAYLEY, J. AND GUIDO, J. OPINION AND ORDER OF COURT Bayley, J., August 12, 2002:-- On March 12, 2002, plaintiff, Glenn Herman, instituted this complaint in equity against defendant, Paul E. Dick. Plaintiff avers that he entered into a written agreement dated June 5, 2001, to purchase real estate from defendant, and that defendant has refused to transfer the real estate to him under the terms and conditions of their contract which is attached as an Exhibit to the complaint. Count 1 seeks specific performance of the agreement to sell the real estate. Count 2, titled "Breach of Contract," avers: 23. Plaintiff intended to further subdivide and develop this property upon completion of its purchase. Defendant's action has caused Plaintiff to lose any profit he may have earned in the sale of the subdivided lots, which profit he estimates to be $100,000. 24. As a result of Defendant's refusal to perform according to the Agreement, Plaintiff has suffered the loss of out-of pocket [sic] expenses which he incurred in reliance upon the Agreement. These expenses include the $2,500 down payment, $3,200 owed to Mr. Neidlinger, 02-1221 EQUITY TERM attorneys' fees of $1,267.50, and costs of suit. WHEREFORE, for all the above reasons, the Plaintiff, Glenn Herman, respectfully requests that this Court grant to him and against Defendant a judgment in the amount of $106,967.50 plus costs of suit, which amount represents all expenses incurred by Plaintiff in reliance upon the Agreement. Defendant has filed a preliminary objection alleging the misjoinder of a cause of action at law with a cause of action in equity. Pa. Rule of Civil Procedure 1509(c) provides: The objection of the existence of a full, complete and adequate non-statutory remedy at law shall be raised by preliminary objection. If the objection is sustained, the court shall certify the action to the law side of the court. In Lustig v. Lusfig, 438 Pa. Super. 320 (1995), the Superior Court of Pennsylvania stated: There is no authority in the Rules of Civil Procedure permitting the joinder of an action at law with an action in equityJ In Adams v. Ramsey, 49 Cumberland L.J. 269 (2000), there was a preliminary objection to causes of action in a complaint in equity for specific performance of real estate, and damages for breach of a separate agreement to settle the dispute. Noting that this was not a situation where the plaintiff sought damages collateral to specific performance, the preliminary objection was sustained and the cause of action for breach of the separate settlement agreement was transferred to the law side of the ~ The Supreme Court of Pennsylvania has recently published Proposed Recommendation No. 180, which is a Proposed Consolidation of the Action in Equity with the Civil Action. -2- 02-1221 EQUITY TERM court. In Rusiski v. Pribonic, 511 Pa. 383 (1986), a chancellor in equity granted specific performance of an agreement to sell real estate and awarded collateral damages to the plaintiff. The Supreme Court of Pennsylvania stated that: consequential damages may be awarded as collateral relief to a decree of specific performance, since the power of a chancellor extends to shaping and rendering a decree which accords with the equities in the case. Sigal v. Manufacturer's Light & Heat Co., 450 Pa. 228, 299 A.2d 646 (1973); Township of Salisbury v. Vito, 446 Pa. 200, 285 A.2d 529 (1971); Dombrowski v. City of Philadelphia, 431 Pa. 199, 245 A.2d 238 (1968). However, these damages must be such as would naturally and ordinarily follow from the breach, must have been reasonably foreseeable and within the contemplation of the parties at the time they made the contract and must be capable of being proved with reasonable certainty. Keystone Diesel Engine Company v. In/in, 411 Pa. 222, 191 A.2d 376 (1963); Adams v. Speckman, 385 Pa. 308, 122 A.2d 685 (1956); Taylor V. Kaufhold, 368 Pa. 538, 84 A.2d 347 (1951). In the case sub judice, for plaintiff to be entitled to specific performance in equity, defendant must have breached the contract of sale for real estate dated June 5, 2001. Plaintiff also seeks money damages for the alleged breach. Those damages are collateral to the count of specific performance; i.e., damages arising from the failure of plaintiff to transfer the real estate to him as required by the contract of June 5, 2001. Therefore, the preliminary objection as to joinder will be dismissed. Defendant objects to the claim of plaintiff for lost profits. In Rusiski v. Pribonic, supra, the chancellor awarded specific performance of a 1979 contract to sell real estate. On the original closing date, the buyer had secured a twenty year mortgage at 10.25 percent interest. In 1982, following the decree of specific performance, the -3- 02-1221 EQUITY TERM buyers were only able to secure a mortgage at a rate of 15.25 percent. The chancellor awarded collateral damages by calculating the five percent increase in the mortgage rate over the term of the mortgage, reduced to net worth. By the time the Supreme Court heard the case, interest rates were 10.50 percent, and the average life of a residential mortgage was 11.79 years. While the Court concluded that the claim for damages was collateral to the decree in specific performance it reversed the award concluding, that because interest rates over the life of the mortgage could be expected to fluctuate dramatically, the actual damages to the buyers were not capable of being proven with reasonable certainty. In the words of the Court, "We would look a little silly today if the Chancellor's Decree had been fulfilled and Appellees today would be refinancing the debt at today's rate of interest of ten to eleven per cent [sic]. What a windfall equity would have bestowed upon them." The Court held that the only collateral damages suffered by the buyers for the breach which could be ascertained with reasonable certainty were the increases in closing costs occasioned by the passage of time. In the case sub judice, plaintiff has pleaded a claim for lost profits arising out of defendant's alleged breach of the June 5, 2001 contract to sell real estate for which specific performance is sought. Such damages are liquidated, not unliquidated, as suggested by defendant. Whether the damages sought ara reasonably foreseeable and within the contemplation of the parties' contract on June 5, 2001, and if so, whether they can be proven with reasonable certainty, is a matter of evidence, not pleading. -4- 02-1221 EQUITY TERM For the foregoing reasons, the following order is entered. ORDER OF COURT AND NOW, this J ~ day of August, 2002, the preliminary objections of defendant to plaintiffs complaint, ARE DISMISSED. By th, James M. Robinson, Esquire For Plaintiff Edgar B. Bayley, J. Douglas G. Miller, Esquire For Defendant :saa -5- GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : NO. 02 - 1221 CIVIL TERM : : CIVIL ACTION - EQUITY : : JURY TRIAL DEMANDED NOTICE TO PLEAD You are hereby notified to file a written response to the enclosed Answer with New Matter within twenty (20) days from service hereof or a judgment may be entered against you. Date: October 1, 2002 IRWIN, McKNIGHT & HUGHES Do~glas~. M~lle~', Es~quire Supreme Court I.D. No. 83776 60 West Pomfret Street Carlisle, Pennsylvania 17013 (717) 249-2353 Attorney for Defendant, Paul E. Dick GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA NO. 02 - 1221 CIVIL TERM : CIVIL ACTION - EQUITY : JURY TRIAL DEMANDED ANSWER WITH NEW MATTER TO PLAINTIFF'S AMENDED COMPLAINT AND NOW this 1st day of October, 2002, comes the Defendant, Paul E. Dick, by and through his attorneys, Irwin, McKnight & Hughes, and respectfully file this Answer with New Matter to the Plaintiff's Complaint, and in support thereof aver as follows: 1. The averments of fact contained in paragraph one (1) of the Plaintiff's Complaint are admitted. 2. The averments of fact contained in paragraph two (2) are admitted. 3. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the troth of the averments contained in paragraph three (3) so they are therefore specifically denied and strict proof thereof is demanded at trial. 4. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments contained in paragraph four (4) so they are therefore specifically denied and strict proof thereof is demanded at trial. 5. The averments of fact contained in paragraph five (5) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, Defendant does not recall initialing and signing the alleged Agreement and the initials appear to be different throughout the document. 6. The averments of fact contained in paragraph six (6) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, Defendant does not recall signing the second completed Statement of Estimated Seller's Costs. 7. The averments of fact contained in paragraph seven (7) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 8. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the aveJments contained in paragraph eight (8) so they are therefore specifically denied and strict proof thereof is demanded at trial. 9. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments contained in paragraph nine (9) so they are therefore specifically denied and strict proof thereof is demanded at trial. 10. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the troth of the averments contained in paragraph ten (10) so they are therefore specifically denied and strict proof thereof is demanded at trial. 11. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the troth of the averments contained in paragraph eleven (11) so they are therefore specifically denied and strict proof thereof is demanded at trial. 12. The averments of fact contained in paragraph twelve (12) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, the Defendant's attorneys did not ask Mr. Neidlinger to start the process of subdivision. 13. The averments of fact contained in paragraph thirteen (13) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, Mr. Neidlinger did prepare a "sketch plan" that was shown to Defendant's attomeys, which plan raised more questions than it answered with regard to the property and the alleged Agreement of Sale. 14. The averments of fact contained in paragraph fourteen (14) are specifically denied and strict proof thereof is demanded at trial. By way of further answer, the "sketch plan" had several errors, did not adequately identify the acreage of the property, did not contain satisfactory lot lines, and did not otherwise correspond with the alleged Agreement of Sale. 15. The averments contained in paragraph fifteen (15) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 16. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the truth of the averments contained in paragraph sixteen (16) so they are therefore specifically denied and strict proof thereof is demanded at trial. COUNT I - SPECIFIC PERFORMANCE 17. The answers contained in paragraphs one (1) through sixteen (16) to the Plaintiff's Complaint are hereby incorporated by reference as if fully set forth herein. 18. The averments contained in paragraph eighteen (18) are conclusions of law to which no response is required. To the extent that a response is required, the avem~ents are specifically denied and strict proof thereof is demanded at trial. 19. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the troth of the avem~ents contained in paragraph nineteen (19) so they are therefore specifically denied and strict proof thereof is demanded at trial. 20. After reasonable investigation, Defendant is without knowledge or information sufficient to form a belief as to the troth of the averments contained in paragraph twenty (20) so they are therefore specifically denied and strict proof thereof is demanded at trial. 21. The avemients contained in paragraph twenty-one (21) are conclusions of law to which no response is required. WHEREFORE, Defendant, Paul E. Dick, respectfully requests this Honorable Court to enter a judgment in his favor and against Plaintiff in this matter, together with reasonable costs and attorney fees, and such other and further relief as this Court deems just. COUNT II - BREACH OF CONTRACT 22. The answers contained in paragraphs one (1) through twenty-one (21) to the Plaintiff's Complaint are hereby incorporated by reference as if fully set forth herein. 23. The averments contained in paragraph twenty-three (23) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. 24. The averments contained in paragraph twenty-four (24) are conclusions of law to which no response is required. To the extent that a response is required, the averments are specifically denied and strict proof thereof is demanded at trial. WHEREFORE, Defendant, Paul E. Dick, respectfully requests this Honorable Court to enter a judgment in his favor and against Plaintiff in this matter, together with reasonable costs and attorney fees, and such other and further relief as this Court deems just. NEW MATTER 25. The averments of fact contained in the Answers to the Plaintiff's Complaint are hereby incorporated by reference and are made part of this New Matter. 26. Defendant lacked the capacity necessary to execute the purported Agreement of Sale. 27. Furthermore, Defendant cannot recall if in fact he initialed each location on the document alleged by Plaintiff to be the Agreement of Sale between the parties, and in fact the initials at the end of the document appear to differ from those on the first several pages. 28. At all relevant times hereto, Defendant has required the assistance of his agents named under various Powers of Attorney in order to properly manage his financial, property and business affairs and resources. 29. At all relevant times hereto, Defendant was unable to fully understand the terms, conditions, and requirements of the purported Agreement of Sale. 30. At no time were any of Defendant's agents named under various Powers of Attorney present to explain the terms, conditions, or requirements of any document purported to be signed by Defendant. 31. On or about May 22, 2002, Defendant executed a Listing Contract to list his property for sale at the price of $250,000.00. 32. Defendant's son, and his agent under a Power of Attorney, had discussed the terms of the Listing Contract with Defendant and agreed with the price. 33. Defendant, however, did not discuss the specific terms of any purported Agreement of Sale with any of his agents under various Powers of Attorney. 34. The purported Agreement of Sale dated June 5, 2001 was prepared less than one month after the property was listed in accordance with the Listing Contract. 35. Despite the short time the property was placed on the market, the purported Agreement of Sale contains a sales price some $70,000.00 less than the listing price, and only 72% of the listing price. 36. The terms of the purported Agreement of Sale are unconscionable, overreaching and negotiated in bad faith. 37. Paragraph Two of the purported Agreement of Sale identifies the property as approximately 70 acres of 671 Old Mill Road. 38. Paragraph Five of the purported Agreement of Sale references an "incomplete" subdivision and the subdivision of approximately 10 acres containing a house and barn. 39. The "sketch plan" dated June 28, 2001 and prepared by Larry V. Neidlinger is asserted by Plaintiff to be the substantial completion of said subdivision. 40. However, the "sketch plan" identified by Plaintiff had several material errors, did not adequately identify the acreage of the property, did not contain satisfactory lot lines to Plaintiff, and did not otherwise correspond to the above-cited paragraphs in the alleged Agreement of Sale. 41. The "sketch plan" identifies three (3) lots to be subdivided from the main property, identified as Lots A, B, and C. 42. According to the "sketch plan," Lots A, B, and C are to range in sizes of approximately 10 acres, 7 acres, and 2 acres respectively. 43. However, the "sketch plan" incorrectly states that the residual tract is to be approximately 69.24 acres, when in fact it neglects to also subtract Lot B identified as having 7 acres. 44. Upon information and belief therefore, the "sketch plan" actually creates a residual tract of approximately 62.24 acres, far less than the property identified in the purported Agreement of Sale. 45. Furthermore, the "sketch plan" places the primary interior lot line for Lots A and B in such a manner as to exclude an existing fence line utilized by Defendant and his son in the operation of a farm. 46. If the interior lot line were properly adjusted to include said existing fence line, the residual tract would be further reduced by a significant margin. 47. Likewise, to require Defendant to remove said existing fence line would result in significant labor and expense not contemplated by the purported Agreement of Sale. 48. The alleged Agreement of Sale, in light of the "sketch plan," contains such material mistakes that it is incapable of being performed in accordance with its terms. 49. At all relevant times prior to June 2001, Plaintiff assured Defendant and his agent or agents that if the parties entered into an agreement, the property would be used solely as a residence for himself and members of his family. 50. Plaintiff's Complaint, however, seeks among its remedies lost profits fi.om his inability "to further subdivide and develop the property." 51. In the alternative, if this Court finds that a binding Agreement of Sale exists, said prior oral representations of Plaintiff constitute a condition of the contract upon which Defendant reasonably and in good faith relied. 52. In the alternative, in the absence of such representations, Defendant would not have agreed to sell property to Plaintiff. 53. Accordingly, the representations of Plaintiff estop him from seeking the remedies requested in the Complaint. WHEREFORE, Defendant, Paul E. Dick, respectfully requests this Honorable Court to enter a judgment in his favor and against Plaintiff in this matter, together with reasonable costs and attorney fees, and such other and further relief as this Court deems just. Dated: October 1, 2002 Respectfully Submitted, IRWIN, McKNIGHT & HUGHES Douglas ~Mffier, E~qu[re Supreme Court ID # 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013 (717) 249-2353 Attorney for Defendant, Paul E. Dick VERIFICATION The foregoing document is based upon infomtation which has been gathered by my counsel and myself in the preparation of this action. I have read the statements made in this document and they are true and correct to the best of my knowledge, information and belief. I understand that false statements herein made are subject to the penalties of 18 Pa.C.S.A. Section 4904, relating to unswom falsification to authorities. PAUL E DICK, by and through his agent, RICHARD DICK CERTIFICATE OF SERVICE I, Douglas G. Miller, Esquire, do hereby certify that I have served a tree and correct copy of the foregoing document upon the persons indicated below by facsimile and by first class United States mail, postage paid in Carlisle, Pennsylvania 17013, on the date set forth below: James M. Robinson, Esquire Turo Law Offices 28 South Pitt Street Carlisle, PA 17013 (Attorney for Plaintiff) Date: October 1, 2002 IRWIN, McKNIGHT & HUGHES Douglas G~Mi~le~-, ~squire Supreme Court ID # 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013-3222 (717) 249-2353 Attorney for Defendant, Paul E. Dick GLENN HERMAN, PAUL E. DICK, Plaintiff v. i NO. 02-1221 Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL TERM : CIIVIL ACTION - EQUITY ANSWER TO DEFENDANT'S NEW MATTER Plaintiff, Glenn Herman, by and through his attorneys, Turo Law Offices, respectfully submits the following answer to the new matter filed by the Defendant, Paul E. Dick. 25. No answer is required. 26. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to fo,. a belief as to the truth of the avem~nt. It is therefore specifically denied and proof thereof is demanded at trial. 27. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to form a belief as to the truth of the averment. It is therefore specifically denied and proof thereof is demanded at trial. 28. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to fo,. a belief as to the truth of the averment. It is therefore specifically denied and proof thereof is demanded at trial. 29. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to form a belief as to the truth of the averment. It is therefore specifically denied and proof thereof is demanded at tdal. 30. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to form a belief as to the truth of the ave,~ent and it is therefore specifically denied and proof thereof is demanded at trial. 31. Admitted. 32. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to fo., a belief as to the truth of the averment. It is therefore specifically denied and proof thereof is demanded at trial. 33. After reasonable investigation, the Plaintiff is without sufficient knowledge or info~mafion to fo~l. a belief as to the truth of the ave¢l~ent. It is therefore specifically denied and proof thereof is demanded at trial. 34. Admitted. 35. Admitted with an explanation. Originally, Defendant wanted to list the property for $300,000. The listing agent info~¥~l Defendant that land in that area was selling for approximately $2,000 per acre. After some discussion, the listing agent agreed to list the property for $250,000, but told him that he would be lucky to get $200,000. When the subject offer of $2,571.43 per acre was made, the listing agent informed Defendant that it was a good offer because all of the improvements ware located on the 10 acres being retained by the Defendant. The Defendant had several days dudng which to consider the offer before accepting it. 36. Denied. 37. Admitted. 38. Admitted. 39. Denied. Mr. Neidlinger was asked by Roger InNin, Esq. to prepare a subdivision plan for the Defendant. The first part of this project was to prepare a sketch plan on which the Defendant could identify the exact boundaries of the two parcels. The sketch plan was substantially completed, not the subdivision plan. 40. Admitted. The sketch plan was incomplete because the Defendant never appeared at a meeting scheduled at Mr. Irwin's office to discuss the proposed subdivision and identify the exact line along which the parcel was to be divided. Mr. Neidlinger could not properly identify the exact lot lines or acreage of the subdivided lots without this info~,ation from the Defendant. 41. Admitted with an explanation. The sketch plan is an informal document used to plot and sketch out the details of the moro detailed subdivision plan. Mr. Neidlinger was using the subject sketch plan to plot the details for two proposed transactions on the same lot, the subdivision of the parcel into two lots (Lot A and the residual) for the Defendant, and the partitioning of approximately two acres (Lot C) around the mobile homo for the Plaintiff (due to the Defendant's request on page 1 of the Agreement of Sale). Lot B was plotted merely as a continuation of the interior lot line in the event that Defendant decided to retain a larger portion of the parcel, the proposed line being a logical place to divide the property. 42. Admitted with an explanation. In the first transaction in which the lot is subdivided for the Defendant, Lot C is merely a portion of the residual, which was to be sold to the Plaintiff. As mentioned above, Lot C was identified for the Plaintiff in the event that he decided to partition an area around the mobile home after completion of the first transaction. 43. Admitted with an explanation. Mr. Neidlinger admits that he mede a clerical error on the sketch plan. He intended to identify the parcel to be sold by subtracting Lot A from the total acreage of 81.24 acres. As mentioned above, Lot B was identified only in case Defendant changed his mind about the size of the parcel to be retained. Mr. Neidlinger never intended to deduct Lot C from the acreage to determine the size of the residual. ~.~.. Denied. The residual lot was intended to be the total acreage of 81.24 acres minus the ten acres identified as Lot A. 45. Admitted with an explanation. Mr. Neidlinger's instructions from Roger Irwin, Esq. was to subdivide ten acres, including the existing house and barn, from the subject parcel of land. After plotting the parcel, Mr. Neidlinger identified a line along which it was logical to divide the parcel, based on its present shape. There was no logical way for him to include the house, barn and fence in a ten-acre parcel. By using the line he identified, the house and barn fit nicely into the parcel, although the fence remained in the residual lot. This is one of several items he intended to discuss with the Defendant at the meeting at which the Defendant never appeared. 46. Denied. Based on the instructions given by Mr. Irwin, if the interior lot line was moved to the fence line, then the side lot line would also be moved to keep Lot A approximately 10 acres. This would mean that the barn would not be located in Lot A, which is why Mr. Neidlinger proposed the interior lot line where he plotted it. 47. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to form a belief as to the truth of the averment and it is therefore specifically denied and proof thereof is demanded at trial. By way of further answer, it was never intended that Defendant would be required to remove the fence unless he wished to do so of his own accord. 48. Denied. 49. Denied. 50. Admitted. 51. This ave,,ent is a legal conclusion to which no response is required. To the extent that a response is required, the averment is specifically denied. By way of further response, it is denied that any such oral representations were ever mede. 52. After reasonable investigation, the Plaintiff is without sufficient knowledge or information to fom, a belief as to the truth of the averment and it is therefore specifically denied and proof thereof is demanded at trial. 53. This ave,,ent is a legal conclusion to which no response is required. To the extent that a response is required, the averment is specifically denied. WHEREFORE, for all the reasons set forth above, the Plaintiff, Glenn Herman, requests judgment in his favor and against the Defendant. Respectfully Submitted TURO LAW OFFICES Date Ja~)(s M. Robi~l(son, Esquire 2ff,~outh Pitt {itreet Carlisle, PA 17013 (717) 245-9688 Attomey for Plaintiff CERTIFICATE OF SERVICE I hereby certify that I served a true and correct copy of the Plaintiff's Answer to Defendant's New Matter upon Douglas G. Miller, Esquire, by depositing same in the United States Mail, first class, postage pre-paid on the 17th day of October, 2002, from Carlisle, Pennsylvania, addressed as follows: Douglas G. Miller, Esquire Irwin, McKnight & Hughes West Pornfret Professional Building 60 West Pomi~et Street Carlisle, PA 17013 TURO LAW OFFICES Ja~h~s M. Robinson, Esquire 27~..o.uth_P. itt ./?~r_ ~e .e. t Ca?lisle, PA m 17013 (717) 245-9688 Attomey for Plaintiff VERIFICATION I, James M. Robinson, Esquire, attorney for the Plaintiff herein, have sufficient knowledge of the fac~s contained in this Answer to Defendant's New Matter and vedfy that the statements made in the foregoing Answer to Defendant's New Matter are true and correct to the best of my knowledge, based upon info..afion received from the Plaintiff. I understand that false statements herein made are subject to the penalties of 18 Pa. C.S.A. ~4904 relating to unsworn falsification to authorities. A verification executed by the Plain[iN will be filed of record as soon as it becomes available. Date/ PRAECIPE FOR LISTING CASE FOR TRIAL (Must be typewritten and submitted in duplicate) (Check one) TO THE PROTHONOTARY OF CUMBERLAND COUNTY Please list the following case: ( ) for JURY trial at the next term of civil court. ( X ) for trial without a jury. CAPTION OF CASE (entire caption must be stated in full) Glenn Herman (Plaintiff) vs. Paul E. Dick (Defendant) (check one) ( ) ( ) ( ) ix) Assumpsit l"respass Trespass (Motor Vehicle) · (;p~-~_'i f'ir, p~rfnrz~,-lCe (other) The trial list will be called on and Trials comrnence on Pretrials will be held on (Briefs are clue 5 days before pretrials.) (The party listing this case for trial shall provide forthwith a copy of the praecipe to all counsel, pursuant to local Rule 214-1.) Indicate the attorney who will try case for the party who files this praecipe: Indicate trial counsel for other parties if known: Doug]~.~ G_ Miller; ~.s~ire Date: This case is ready for trial. 2/20/03 Print Name~/ J_ames_M_~__13D._bi_n~on_~_F~ Attorney for: ]Plaintiff GLENN HERMAN, PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT 02-1221 EQUITY TERM AND NOW, this ORDER OF COURT day of March, 2003, IT IS ORDERED that an adjudication shall be conducted in Courtroom Number 2, Cumberland County Courthouse, Carlisle, Pennsylvania, at 1:30 p.m., Wednesday, Ap Edgar B. Bayley, 03. James M. Robinson, Esquire For Plaintiff Douglas G. Miller, Esquire For Defendant Court Administrator :sal GLENN HERMAN, PLAINTIFF Vo IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT 02-1221 EQUITY TERM ORDER OF COURT AND NOW, this {,"? day of March, 2003, IT IS ORDERED that the adjudication currently scheduled for Wednesday, April 16, 2003, IS CANCELLED. The adjudication is rescheduled to Thursday, May 15, 2003, at 8:45 a.m., in Courtroom Number 2, Cumberland County Courthouse, Carlisle, Pennsylvania. James M. Robinson, Esquire For Plaintiff Douglas G. Miller, Esquire For Defendant Court Administrator Edgar B. Bayley, J. :sal Turo Law Offices RON TURO, Esquire ROBERT J. MULDERIG, Esquire GALEN R. WALTZ, Esquire JAMES M ROBINSON, Esquire DANIEL D. WORLEY, Esquire www. TuroLaw. com 28 South Pitt Street Carlisle, Pennsylvania 17013 (717) 245-9688 (800) 562-9778 Fax (717) 245-2165 March 12, 2003 The Honorable Edgar B. Bayley Cumberland County Courthouse 1 Courthouse Square Carlisle, PA 17013-3387 Re: Glenn Herman v. Paul E. Dick No. 02-1221 Equity Term Dear Judge Bayley: I am in: receipt of your Order dated March 10, 2003 wherein you scheduled adjudication of the above-referenced matter for April 16, 2003. I have just been contacted by my client who indicates that he is having major surgery during March and will require the month of April to recover. I am writing to request that the above matter be rescheduled for sometime after May 1, 2003. Thank you for you consideration of my request. JMR/jge cc: Sincerely, a ' · Douglas G. Miller, EsqUire Glenn Herman GLENN HERMAN, PLAINTIFF IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT : 02-1221 EQUITYTERM IN RE: ADJUDICATION IN EQUITY AND NOW, this DECREE NlSl day of June, 2003, IT IS DECREED: (1) Defendant, Paul E. Dick, shall convey to plaintiff, Glenn Herman, that part of his farm at 671 Old Mill Road, Lower Frankford Township, Cumberland County, south of the established fence, under the terms and conditions in the contract of sale dated June 5,2001. (2) Plaintiffs claim for collateral damages, IS DENIED. (3) Each party shall pay their own attorney fees and costs. Edgar B. Bayley, J. James M. Robinson, Esquire For Plaintiff Douglas G. Miller, Esquire For Defendant :sal GLENN HERMAN, PLAINTIFF : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT Bayley, J., June 3, 2003:-- : 02-1221 EQUITYTERM IN RE: ADJUDICATION IN EQUITY OPINION AND DECREE NISI On March 12, 2002, plaintiff, Glenn Herman, instituted this complaint in equity against defendant, Paul E. Dick. Plaintiff alleges that he entered into a written contract dated June 5, 2001 to purchase real estate from defendant, and that defendant breached the agreement by refusing to transfer the property to him. Plaintiff seeks specific performance of the contract of sale and collateral damages for defendant's breach. An adjudication was conducted on May 15, 2003. The issues have been briefed and are ready for decision. FINDINGS OF FACT Paul Dick, age 84, lives in Carlisle. He owns an 81.24 acre farm at 671 Old Mill Road, Lower Frankford Township, Cumberland County. There is a farmhouse on the property in which his son Richard Dick has lived for about ten years. Richard Dick has used the property as a crop farm for about twenty years. He grows mostly hay which he uses for raising beef cattle on the property. About nine years ago, Richard Dick built 02-1221 EQUITY TERM a sturdy fence running generally east and west across the width of the property to the south of where the farmhouse, a barn and a pasture is located. The pasture provides access to a stream. Dick uses the pasture to graze his cattle. At times he uses the stream to water them. In the early part of 2001, Paul Dick contacted Peter Kafkales, a real estate agent for Jack Gaughen Realtor, ERA. Dick told Kafkales that he wanted to sell the land on his farm beyond the fence and keep the remainder. Dick wanted the remainder so his son would be able to continue to live in the farmhouse, use the barn, and raise cattle on the land retained. When the property was sold, Richard Dick could rent other land on which to grow hay. Peter Kafkales visited the farm and Paul Dick showed him what he wanted to sell. Kafkales knew that the pasture with access to the stream was to be retained as part of the land around the house and barn, and that the fence was to be the line of demarcation for a subdivision of the property. There is a mobile home that Dick rents to a woman on the south end of the farm. That part of the farm was to be sold but Dick wanted to protect the current lessee indefinitely. Ka~ales drew up a listing agreement for 671 Old Mill Road, Newville, Lower Frankford Township, Cumberland County at $250,000, which Paul Dick signed. Ka~ales put the property on the Multi-List using a figure of"70 plus acres" to be sold out of 80 acres. The acreage was listed as "70 plus" by "eyeballing" the property. Glenn Herman saw a sale sign on the farm and contacted William Myers, an agent for Jack Gaughen Realty, ERA. Myers never met Paul Dick. Myers, Herman, and -2- 02-1221 EQUITY TERM Kafkales went together to see the farm. Herman liked the property. He wanted to move from New Jersey, build a house on the property in which he would live with his mother, and build two houses on two acre Pots which he would sell to raise money to put toward his own house. Herman made an offer and Dick made a counteroffer. Herman increased his offer which Dick accepted and which resulted in his execution of a written agreement of sale dated June 5, 2001. William Myers drafted that sales contract which sets forth in part: 1. "70 -+ Acree of 571 Old Mill Road." (Emphasis added.) 2. "Purchase price $180,000." 3. "Settlement to be made on or before August 8, 2001, or date of final subdivision approval." 4. "Since subdivision is incomplete, offer is $2,571.43 per acre and final price will be based on # of acres times the $2,571.43. Only subdivision will be approx. 10 Acre lot containing house and barn, as per seller's request." (Emphasis added.) 5. "Buyer agrees to continue current land rental agreement with owners of mobile home on property." Herman paid a deposit of $2,500 on the contract. Larry Neidlinger, a surveyor, was contacted by Paul Dick's attorney to prepare a land subdivision needed for the sale to be completed. Neidlinger talked to Peter Kafkales, but he never talked to Paul Dick or saw the agreement of sale. Neidlinger prepared a sketch to be utilized by Dick and -3- 02-1221 EQUITY TERM Herman to create some parameters to help them determine where the dividing lines would be located so he could then prepare a subdivision to be submitted to Lower Frankford Township? Neidlinger met Herman who told him that he wanted to subdivide the land on which the mobile home was located. Herman retained Neidlinger for that purpose and also had him identify an area on the sketch that approximated the location of a house so that the land could be probed to determine if it was adequate for sewage disposable. Herman told Neidlinger that he wanted his dividing line with Dick to be at least in a tree line that is closer to Dick's house and barn than the fence so that he could be assured of continued visual protection from those buildings. Neidlinger did not walk into the woods so he did not know that the fence crossed the width of the property. On the sketch, Neidlinger drew a line through the woods, not along the fence, and continued it east. The line then goes through the fence and through the woodland that is south of the pasture? Neidlinger also drew a line just east of the house and barn enclosing approximately ten acres.3 The road frontage is to the west. The pasture and part of the woodland to the east as enclosed on the sketch is approximately seven acres? Neidlinger estimated the acreage in Tract A and Tract B because the woodland Defense Exhibit No. 1, a copy of which is attached to this opinion. The fence is only depicted on the western side of the property. Tract A on the sketch. Tract B on the sketch. 02-1221 EQUITY TERM and marshy areas of the typography make it extremely difficult, even with his expertise, to accurately determine the amount of the acreage. THE ISSUES Plaintiff maintains that defendant is contractually obligated to convey his farm to him except for that area designed as Tract ^ on the Neidlinger sketch consistent with the details to be drawn on a final subdivision plan. Alternatively, plaintiff maintains that defendant is contractually obligated to convey his farm to him except for that area north of the fence. Defendant maintains that plaintiff is not entitled to a decree of specific performance. The issues are whether plaintiff is entitled to a decree of specific performance, and if so whether he is entitled to any collateral damages. LEGAL PRINCIPLES In Yinger v. Springer, 452 Pa. 66 (1973), a cause of action in equity for specific performance was based on a written sales agreement that described "the property known as R D 1 New Cumberland Jacob Springer's 80 acres more or less wich [sic] will exclude 7 acres of the 87 acres more or less." Citing Suchan v. Swope, 357 Pa. 16 (1947), the Supreme Court of Pennsylvania noted: Parol evidence to describe the land intended to be sold is one thing, and parol evidence to apply a written description to land is another and very different thing, and for that purpose is admissible. The Court concluded: In the instant case we must deal with a parcel which can be defined algebraically as "my farm minus X" where the parcel 02-1221 EQUITY TERM constituting "my farm" is given a more complete description than was given in Suchan and the parcel equal to "X" is defined only as a parcel equal to "7 acres" but which parcel appellant alleges is the subject of a sales agreement between Yinger and another buyer. Just as parol evidence is admissible to show that the description of the whole parcel is sufficiently definite under the statute, so parol evidence is admissible to show that the description of the parcel to be subtracted from the whole parcel is sufficiently definite under the statute. In Turner v. Hoetetler, 359 Pa. Super. 167 (1986), a cause of action in equity for specific performance was based on a written contract that provided for the sale of a surveyed two acre tract and an option to purchase eight additional acres. The contract provided that "[t]he said eight acres shall be contiguous to and shall lie generally south and west of the two acre parcel. The exact boundary lines of the said eight acres shall be determined by mutual agreement of the parties." The purchasers took possession of the two acre tract but when a dispute arose with respect to the eight additional acres the purchasers brought an action in equity for specific performance of the contract. Reviewing the relevant decisions, the Superior Court noted: [w]here, from the face of the contract, it appears that a certain or specific tract was intended to be conveyed, but its description is ambiguous due to its wording, parol evidence will be admissible to allow a more precise description to be made, and specific performance will be a proper remedy. The trial judge allowed the introduction of conflicting parol testimony: Appellees' testified that, after some discussion, appellant's agreed to sell appellees 10 acres. Appellees further testified that the contract was drawn as it was to utilize the two acre survey 02-1221 EQUITY TERM which had already been completed; and that the so-called eight acre "option" was an extension of the two acre tract as defined by natural borders, such as fences, tree lines and the like. Appellees also testified that although some concern arose over the wording in the memorandum when it was presented to them, all the parties were in a hurry to close the deal and they chose not to have it redrafted, as it had taken several weeks to get the draft in question from Mr. Ogburn. According to appellees, in September, 1980, when the first $2,000 payment became due, Mr. Turner and Mr. Hostetler "walked the lines" of the eight acres to conclusively establish its borders. Appellants, Hostetlers, testified that the initial agreement was only firm on the two acres but that the Turners had desired an opportunity to purchase more if they later desired, hence the option was included. Hostetlers also testified that, although several proposals and counter-proposals were made regarding the borders of the eight acre tract, none were ever mutually agreed to. The trial court found appellees' testimony more credible and issued a decree nisi for the specific performance of the contract, setting the boundaries as per the testimony of appellees. The Superior Court of Pennsylvania affirmed, concluding: The trial judge found that the parties did subsequently determine the boundaries of the eight acres in question. At that time, giving effect to that factual finding, the obligation arose to convey the tract, as set by the parties, upon timely payment of the sales price which has been paid in full. Appellants' failure to convey resulted in the bringing of an action for specific performance and, considering the trial judge's finding, he was correct in ordering the tract to be conveyed. DISCUSSION AND CONCLUSIONS This case involves a contract for the sale of a specific tract but its description is ambiguous. Thus parol evidence was properly admitted, without -7- 02-1221 EQUITY TERM objection by either party, to determine if possible a description to the land defendant contracted to sell to plaintiff. The evidence is that Paul Dick contacted Peter Kafkales in the early part of 2001 to Sell that part of his farm south of the established fence, with the current lessee of the mobile home at the southern end of the property to be protected indefinitely. Kafkales clearly understood what was to be sold, and it was on that basis that he took the listing for Jack Gaughen Realty, ERA. Dick's intent is confirmed by his son Richard that the crop portion of the farm would be sold which would allow him to continue to live in the farmhouse and utilize the barn and the surrounding land that includes the pasture he needs to raise cattle. The dispute as to what land is included in the agreement of sale dated June 5, 2001, which was drafted by William Myers who never met Paul Dick, is caused by the language used in the sales contract: "70 + acres of 671 Old Mill Road - Only subdivision will be approx. 10 Acre lot contain house and barn, as per seller's request." (Emphasis added.) Paul Dick never made any "request." He listed for sale and contracted to sell only that part of his farm south of the fence. The amount of acreage to be sold, described in the contract as 70 acres plus or minus, was and still is unknown because the typography of the property makes it extremely difficult to estimate the acreage being retained. That is why the sales price is $2,571.43 per acre rather than the set amount. Based on our findings of fact, and pursuant to the principles set forth in 02-1221 EQUITY TERM Yinger v. Springer, supra and Turner v. Hostetler, supra, we conclude that plaintiff is entitled to specific performance of the written contract of sale dated June 5, 2601, under the terms and conditions therein, for that part of defendant's farm south of the established fence. That is what defendant contracted to sell and plaintiff contracted to buy? Plaintiff seeks an award of collateral damages as pleaded in his complaint of any profit he may have earned from the sale of the lots he planned to subdivide, his $2,500 down payment, money he owes to Larry Neidlinger, his attorney fees and his costs of suit. In Ru$iski v. Pribonic, 511 Pa. 383 (1986), the Supreme Court of Pennsylvania stated: consequential damages may be awarded as collateral relief to a decree of specific performance, since the power of a chancellor extends to shaping and rendering a decree which accords with the equities in the case. $igal v. Manufacturer's Light & Heat Co., 450 Pa. 228, 299 A.2d 646 (1973); Township of Salisbury v. Vito, 446 Pa. 200, 285 A.2d 529 (1971); Dombrowski v. City of Philadelphia, 431 Pa. 199, 245 A.2d 238 (1968). However, these damages must be such as would naturally and ordinarily follow from the breach, must have been reasonably foreseeable and within the contemplation of the parties at the time they made the contract and must be capable of being proved with reasonable certainty. Keystone Diesel Engine Company v. Irvin, 411 Pa. 222, 191 A.2d 376 (1963); Adams v. Speckman, 385 Pa. 308, 122 A.2d 685 (1956); Taylor V. Kaufhold, 368 Pa. 538, 84 A.2d 347 (1951). 5 This means that Dick must subdivide his property so that he can present a deed to plaintiff in conformity with our decree. -9- 02-1221 EQUITY TERM Before this dispute arose, plaintiff asked Larry Neidlinger whether he could further subdivide two building lots on the subdivision plan to be submitted to Lower Frankford Township for the purchase from Dick. Neidlinger advised him, and plaintiff accepted the advice, not to complicate the Dick subdivision but to wait until his purchase of the land was completed. Our remedy of specific performance will allow plaintiff to later seek a subdivision of lots on the property he is purchasing. He has not proven any damages with reasonable certainty. Furthermore, such damages would not naturally follow from Dick's refusal to transfer the land plaintiff demanded, and were not foreseeable and within the contemplation of the parties at the time they made their contract. Plaintiff's $2,500 down payment will go toward the final purchase price so he has not lost that money. We will not award plaintiff counsel fees. He sought to enforce specific performance of that part of the farm designated as Tract B on the Neidlinger sketch with the dividing line for Tract A in the woods and north of the fence. He is not entitled to that relief to which Dick has successfully defended. Equity warrants that each party pay their own attorney fees and costs in bringing their dispute to resolution. DECREE NI$1 AND NOW, this ~'(~,. day of June, 2003, IT I$ DECREED: (1) Defendant, Paul E Dick, shall convey to plaintiff, Glenn Herman, that part of his farm at 671 Old Mill Road, Lower Frankford Township, Cumberland County, south of James M. Robinson, Esquire For Plaintiff 02-1221 EQUITY TERM the established fence, under the terms and conditions in the contract of sale dated June 5, 2001. (2) Plaintiff's claim for collateral damages, I$ DENIED. (3) Each party shall pay their own attorney fees and costs. By the~Cou Douglas G. Miller, Esquire For Defendant ;sal -11- GLENN HERMAN, : IN THE COURT OF COMMON PLEAS OF PLAINTIFF ' CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT · 02-1221 EQUITY TERM AND NOW, this ORDER OF COURT day of June, 2003, IT IS ORDERED that defendant shall file a brief in chambers not later than Thursday, June 26, 2003, on his motion for post-trial relief. Plaintiff shall file a response brief not later than Monday, July 7, 2003. If either party seeks oral argument the request should be made at the time of the filing of the briefs, in which case oral argument will be sch~_~:J) by this judge. Edgar B. James M. Robinson, Esquire For Plaintiff Douglas G. Miller, Esquire For Defendant :sal GLENN HERMAN, PLAINTIFF V. PAUL E. DICK, : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA DEFENDANT : 02-1221 EQUITY TERM IN RE: MOTION OF DEFENDANT FOR POST-TRIAL RELIEF ORDER OF COURT AND NOW, this ~/~ day of July, 2003, the motion of defendant for post- trial relief, IS DENIED. IT IS ORDERED: (1) Defendant, Paul E. Dick, shall convey to plaintiff, Glenn Herman, that part of his farm at 671 Old Mill Road, Lower Frankford Township, Cumberland County, south of the established fence, under the terms and conditions in the contract of sale dated June 5, 2001. (2) Plaintiff's claim for collateral damages, IS DENIED. (3) Each party shall pay their own attorney fees and costs. James M. Robinson, Esquire For Plaintiff Douglas G. Miller, Esquire For Defendant Edgar B. B'ay~y,~.[,,,( ~.~ ~/o.0~3 :sal GLENN HERMAN, PLAINTIFF IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA PAUL E. DICK, DEFENDANT : 02-1221 EQUITY TERM IN RE: MOTION OF DEFENDANT FOR POST-TRIAL RELIEF OPINION AND ORDER OF COURT Bayley, J., July 9, 2003:-- On March 12, 2002, plaintiff, Glenn Herman, instituted this complaint in equity against defendant, Paul E. Dick. Plaintiff alleged that he entered into a written contract dated June $, 2001 to purchase real estate from defendant, and that defendant breached the agreement by refusing to transfer the property to him. Plaintiff sought specific performance of the contract of sale and collateral damages. An adjudication was conducted on May 1{~, 2003. On June 3, 2003, the following Decree Nisi was entered, supported by a written opinion: (1) Defendant, Paul E. Dick, shall convey to plaintiff, Glenn Herman, that part of his farm at 671 Old Mill Road, Lower Frankford Township, Cumberland County, south of the established fence, under the terms and conditions in the contract of sale dated June 5, 2001. (2) Plaintiff's claim for collateral damages, IS DENIED. (3) Each party shall pay their own attorney fees and costs. 02-1221 EQUITY TERM On July 13, 2003, defendant filed a timely motion for post-trial relief pursuant to Pa. Rule of Civil Procedure 227.1(a)(4). Defendant avers: The Court erred in the Decree Nisi by ruling that Defendant was correct in disputing the amount of property that was to be retained, but that the price is restricted to a per acre amount, despite that Plaintiff knew or should have known the approximate boundary line that would be established. The Court's decision effectively decreases the purchase price approximately $25,000.00, which issue is an integral and essential part of the contract. Defendant contends that the purchase price according to the Agreement of Sale for the property is One Hundred Eighty Thousand and 00/100 ($180,000.00) Dollars. In the alternative, Defendant contends that the Court was incorrect as a matter of law because the mistake as to the acreage so changes the intended purchase price as to prevent the Agreement of Sale from being enforceable. DISCUSSION Defendant avers in his post-trial motion that there was testimony at trial that "he was accustomed to agreeing to a price for property that assured [him] a net sum." The testimony at trial was that defendant sold numerous tracts over the years without using a realtor. It was his custom to agree to a price with the purchaser paying all expenses except attorney fee. Contrary to that custom, when defendant decided to sell part of his 81.24 acre farm, he listed the property with a realtor. On June 5, 2001, he signed an agreement of sale with plaintiff that contained the following provisions: -2- 02-1221 EQUITY TERM "70 + Acres of 671 Old Mill Road." "Purchase price $180,000." "Since subdivision is incomplete, offer is $2,571.43 per acre and final price will be based on # of acres times the $2,571.43. Only subdivision will be approx. 10 Acre lot containing house and barn, as per seller's request." The price of 70 acres at $2,571.43 an acre is $180,000. The typography of the land that defendant is retaining made it extremely difficult to estimate the amount of that acreage; therefore, the land being sold was listed "70 +," and the final price was "$2,571.43 per acre" rather than a set $180,000. As it turns out, the land being sold is less than 70 acres. The per acre price protected both parties. It is unlikely that defendant would be making the same argument if the land being sold had turned out to be more than 70 acres. This court has not decreased the purchase price because the order of specific performance requires defendant to convey only that part of his farm that he agreed in writing to sell at a price of $2,571.43 per acre. Accordingly, for the reasons set forth in the opinion in support of the decree nisi which is incorporated herein, the order of specific performance properly enforces the sale under the terms and conditions that defendant and plaintiff agreed to in their written contract of June 5, 2001. Defendant cannot change the terms. He is not entitled to post-trial relief. ORDER OF COURT AND NOW, this (~ day of July, 2003, the motion of defendant for post- -3- 02-1221 EQUITY TERM trial relief, IS DENIED. IT IS ORDERED: (1) Defendant, Paul E. Dick, shall convey to plaintiff, Glenn Herman, that part of his farm at 671 Old Mill Road, Lower Frankford Township, Cumberland County, south of the established fence, under the terms and conditions in the contract of sale dated June 5, 2001. (2) Plaintiff's claim for collateral damages, IS DENIED. (3) Each party shall pay their own attorney fees and costs. ~ By Court, Edgar B. Bayley, J. James M. Robinson, Esquire For Plaintiff Douglas G. Miller, Esquire For Defendant :sal -4- GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA ._ : NO. 02 - 1221 CIVIL TERM : : C1VIL ACTION - EQUITY : : JURY TRIAL DEMANDED _NOTICE OF APPEAL Notice is hereby given that Paul E. Dick, Defendant in the above-captioned matter, hereby appeals to the Superior Court of Pennsylvania from the Order entered in this matter on the 9t~' day of July, 2003. This Order has been entered in the docket as evidenced by the attached copy of the docket entry. Dated: August 8, 2003 By: Respectfully Submitted, IRWIN, Mci(NIGHT & HUGHES Douglas ~}. l~lffier, Esquire SupremeCourt ID # 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013 (717) 249-2353 Attorney for Defendant, Paul E. Dick GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA .. : NO. 02 - 1221 CIVIL TERM _. : CIVIL ACTION - EQUITY .. : JURY TRIAL DEMANDED REQUEST FOR TRANSCRIPT A Notice of Appeal having been filed in this matter, the official court reporter is hereby ordered to produce, certify and file the transcript in this matter in conformity with Rule 1922 of the Pennsylvania Rules of Appellate Procedure. Dated: August 8, 2003 By: Respectfully Submitted, IRWIN, McKNIGHT & HUGHES Do,las C~Mffier, Esq~uire- Supreme Court ID # 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, Pennsylvania 17013 (717) 249-2353 Attorney for Defendant, Paul E. Dick PYS510 2002-01221 HERMAN' GLENN (vs) DICK PAUL E Reference No..: Case Type ..... : COMPLAINT - EQUITY Judgmeh% ...... .00 Judge Assigned: Disposed DescriBe Comments ............. cumberland County Prot~onotary's office civil Case Inquiry Filed ........ : Time ......... : Execution Date Jury Trial... Disposed Date Higher Crt 1. Higher Crt 2. Page 1 3/12/2002 12:40 o/oo/oooo o/oo/oooo 08876 DICK PAUL E 1100 ENOLA ROAD CARLISLE PA 17013 Judgment Index 6/03/2003 DECREE NISI DICK PAUL E ********************************* . Entries ************************************* 3/12/2002 3/15/2002 4/19/2002 5/0?/2002 5/07/2002 8/12/2002 10/01/2002 10/01/2002 10/17/2002 2/20/2003 3/11/2003 3/17/2003 .... FIRST ENTRY .... ~O~P~A~N~ ~ ~Q~I~Y .............. SHERIFF'S FILE RETURNED FILED. Case Type: COMPLAINT EQUITY Ret Type.: Regular Litigant.: DICK PAUL ~ Address..: 1100 ENOLA ROAD Ct¥/St/ZP: CARLISLE, PA 17013 Hn~ To: PAUL E DICK Shf/DDty · BRIAN.BARRICK -^~3 00 e Tlm~~ 03/14/2002 £u~ : Dat/ ' ' ~ ~ Da ~v' ES M ROBINSON 03/15/2002 Costs .... : ~'=~ ~ _~. JAN ~L~I~ARY OBJECTIONS OF DEFT TO PLFF'S COMPLAINT - BY DOUGLAS G MILLER ESQ FOR DEFT ............................. ~-~0 PRELIMINARY OBJECTIONS BY JANES M ~?~?~_~_~?~_~_ ~&~-~6~-L~-&~-~6~-~'--~ENDANT'S PRELIMINARY OBJECTIONS) BY JANES M. ROBINSON, ESQ._ ............................ A~jk~-A~-~$6~-2-6A~&6-~/[2-02- IN RE PRELIMINARY OBJECTION OF DEFT TO PLFF S COMPLAINT- A~E DISMISSED - BY THE COURT EDGAR B BAYLEY J COPIES MAILED 8/14/02 .............. ~R WITH NEW MATTER TO PLFF'S ANENDED COMPLAINT - BY DOUGLAS G MILLER ESQ FOR DEFT ......... ~-~ ................................................ G H NEW MATTER TO PLFF'S AMENDED COMPLAINT - BY DOUGLAS MILLER ESQ FOR DEFT ............................ ~WER TO DEFT'S NEW MA~[~_i_~[_~_A~_~_~_~?~?~_~?_[?~_~[[ ..... pRAECIPE FOR LISTING CASE FOR TRIAL - BY JAMES M ROBINSON ESQ FOR PLFF ........................................................... COURT - DATE 3/10/0 M E L °N ............................................. ............ -- TED 3 17/03- IT IS QRD~RED THAT TH - ORDER OF COUR%.z_~ o~DULED FOR 4/16/03 IS CANCE~E9 THE ADJUDICATION co~m~gaM~¥~ TO 5/ /03 AT 8:45 AN IN c~ z ..... BAYLEY J COPIES MAILED ........................... ......................................... PLAINTIFF DEFENDANT Amount ROBINSON JAMES M MILLER DOUGLAS G Date Desc HERMAN GLENN 22 HENRY ROAD BRANCHBURG NJ Attorney Info General Index Page 2 PYS510 Cumberland County Prot~onotary's office civil Case Inquiry 2002-01221 HERMAN' GLENN (rs) DICK PAUL E Filed ........ : 3/12/2002 12:40 Reference No..: Time ......... : Case Type ..... : COMPLAINT - EQUITY Execution Date 0/00/0000 JudgmenZ ...... .00 Jury Trial ...... Judge Assigned: Disposed Date. 0/00/0000 Disposed Desc.: . ts ............. Higher Crt 1.: ............ Case Commen Hi~her Crt 2.: ISI DATED 6/3/03 - IN RE ADJUDICATION IN EQUITY - 6/03/2003 DECREE ~ICK ~HALL CONVEY TO PLFF GLENN HERMAN THAT PART OF HIS PAUL E TWP CUMBERLAND cOUNTY FARM AT 671 OLD MILL ROAD LOWER FP_ANKFORD SOUTH OF THE ESTABLISHED FENCE .UNDER THE ,TERMS AND CONDITIONS IN THE CONTRACT OF SALE DATED 6/5/03 - PLFF S CLAIM FOR COLLATEP~AL DAMAGES IS DENIED - EACH PARTY SHALL PAY THEIR OWN ATTY FEES AND COSTS - Bi THE COURT EDGAR B BAYLEY J ESQ COPIES MAILED 6/13/2003 ~NDANT S POST-TRIAL MOTION __B_Y__D_O_U_G__I~_S__G__M_I_L_L_E_R__E_S_Q__F_O__R_~[~___ ~-~-~&~-[-6~-~/{6/03 - IT IS ORDERED THAT DEFT SHA~ MADE AT THE TIME OF Tmm ARGUMENT WILL BE SCHEDULED BY THIS JUDGE - BY THE COURT EDGAR B BAYLEY J COPIES MAILED ......................... ...................... &0~---6~-~2~26~-- IN RE MOTION OF DEFT OP - ENIED - PLFF CLAIM _ 7/09/2003 INION AND ORDER OF C _ FOR COLLATERAL DAMAGES FOR POST-TRI_A~L~EL~I~EF~, e~.l, y THEIR OWN ATTY FEES AND COSTS IED - ~AC~ ~ ...... PA IS DEN J COPIES MAILED ,/10/03 BY THE COURT EDGAR B BAYLEY LAST ENTRY ............. Escrow Information * · s Ad' End Bal · Fees & Debits ........ ***************************************************** COMPLAINT 35.00 35.00 .00 .50 .50 .00 TAX ON CMPLT 5.00 5.00 .00 SETTLEMENT 5.00 5.00 .00 JCP FEE .... ............................ 45.50 45.50 · d of Case Information ******************************************************************************** GLENN HERMAN, PAUL E. DICK, Plaintiff, Defendant. : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA : : NO. 02 - 1221 CIVIL TERM : : CIVIL ACTION - EQUITY : : JURY TRIAL DEMANDED CERTIFICATE OF SERVICE I, Douglas G. Miller, Esquire, do hereby certify that I have served a true and correct copy of the foregoing document upon the persons indicated below by first class United States mail, postage paid in Carlisle, Pennsylvania 17013, on the date set forth below: James M. Robinson, Esquire 28 South Pitt Street Carlisle, PA 17013 Attorney for Plaintiff The Honorable Edgar B. Bayley Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 pam Sheaffer, Court Reporter Cumberland County Courthouse One Courthouse Square Carlisle, PA 17013 Date: August 8, 2003 IRWIN, McKNIGHT & HUGHES er~ Esquire Supreme Court I.D. No. 83776 West Pomfret Professional Building 60 West Pomfret Street Carlisle, pennsylvania 17013-3222 (717) 249-2353 Attorney for Defendant, Paul £. Dick GLENN HERMAN, : Plaintiff : PAUL E. DICK, : Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - EQUITY 02-1221 CIVIL TERM TRANSCRIPT OF PROCEEDINGS Proceedings Cumberland County Courthouse, On May 15, held before the HONORABLE EDGAR B. BAYLEY, J. Pennsylvania, Carlisle, 2003, In Courtroom Number 2 APPEARANCES: James M. Robinson, Esquire For the Plaintiff Douglas R. Miller, Esquire For the Defendant FOR PLAINTIFF INDEX TO WITNESSES DIRECT CROSS REDIRECT RECROSS Glenn Herman 3 11 25 -- Pete N. Kafkalas 27 37 50 50 William R. Myers 51 55 .... Larry Neidlinger 57 67 77 -- Glenn Herman 79 81 .... (Recalled) FOR DEFENDANT Paul E. Dick 84 98 -- Richard L. Dick 101 114 116 Roger Irwin, Esq. 118 126 -- INDEX TO EXHIBITS FOR THE PLAINTIFF MARKED 1 - Agreement for sale of vacant land 6 2 - Turo Law Offices transaction listing 9 3 - Statement of Estimated Seller's Costs 26 FOR THE DEFENDANT 1 - Subdivision plan 12 2 - Listing contract 37 3 - Statement of Estimated Seller's Costs 41 ADMITTED 83 83 83 130 130 130 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: Does re-read the opinion I wrote, May ]_5, 2003 Carlisle, Pennsylvania anyone want to make an opening? so I am familiar with what the issues are. If you don't want to make an opening, call your first witness. MR. ROBINSON: Your Honor, I would like to call Glenn Herman to the stand. GLENN HER~N, having been duly sworn, testified as follows: DIRECT EXAMINATION BY MR. ROBINSON: Q the Court, A Jersey. Q Mr. Herman, how is it that we are in Cumberland County, Pennsylvania, for a matter concerning property? A I had seeked to purchase a piece of property from Mr. Paul Dick and made an offer, which he accepted, and a contract was signed. Later on he did not wish to sell after it was signed. Q A Sir, would you state yeur full name and address for please? Glenn Herman, 22 Henry Road, Branchburg, New How did you learn that the property was for sale? I had been looking for property for approximately 6 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 years to build a house for retirement purposes, and was looking throughout actually a few states. While riding through this particular area there was a sign that property. Q A was posted on the Who did you contact abeut the property initially? I initially contacted the agency that was listed on the sign and got in touch with Mr. Q Mr. Bill Myers, okay. A walking it? Q A telephone, agreed -- Bill Myers. When did you first see the property? When I had gone by it. But are you talking about Yes, sir. Shortly after talking to Mr. Myers on the I came up the following day I believe it was and we we agreed to meet at the real estate office, which I did. We traveled out to the property and I believe the real estate agent, Pete, came a little while later to walk the property with us and show us the property because he was the listing agent apparently and he was familiar with the basic outline of the property, the boundaries. Q What were your plans for the property? A Most of it I was going to continue to use as it was, which was farm; however, I was intending to build a house for myself, my own residence. On the two outer corners of the property I was planning on building two other houses which I 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 was going to sell Q A Q for profit. So it would require Yes. subdivision, Additional work by professionals complete your plans? A Correct. Q A survey? in order to What was presently located on the property? The only thing that was on the property which was for sale was a trailer that was being lived in by individuals who I had not met. In the contract, it stipulated that the individuals would still be allowed to stay on the property and the lease continued as available for them. At which point after the contract had been signed, I asked Mr. Neidlinger, who was doing a survey, while he was doing a survey he might as well subdivide that in case it was not subdivided by the county already for approximately two acres for that site, and that is the only other structure that was on the property that I am aware of. Q few times, During your testimony you mentioned a contract a I would like you to take a look at this. This is an agreement for the sale of vacant land. Do you recognize that document? A It has been over 2 years. THE COURT: Do you have it marked? MR. ROBINSON: No, Your Honor. 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it marked. MR. ROBINSON: I apologize, Your Honor. like to have that marked Plaintiff's Exhibit 1. A THE COURT: If you are going to utilize it, I want Do that first. I would (Plaintiff's Exhibit 1 marked for identification.) Yes, I would say this is a contract and my initials are also on it as the buyer. BY MR. ROBINSON: Q What is the size of the property that we are talking about? A The size of the property was undetermined exactly, it was approximately 72 acres. That was to be verified by survey, it would be plus or minus. Q It was to be, does that mean that there was additional subdivision work that had to be done prior? A It was not laid out exactly, because Mr. Dick wanted approximately ten acres, according to the contract, where he had his house and his barn. and whatever structure might have been on the property. Initially, the property as surveyed was 82 acres, plus or minus. portion, it was wind up being. per acre what minus So cutting out the ten acres, surveying that undetermined exactly what the acreage would According to the contract, it was figured out I would pay for whatever remained of the acreage, the ten acres. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q it looks like $167,500 that is crossed off. how the final sales price was arrived at? On the contract there is an amount, a sale price, Can you tell me The initial price that I had offered was not I asked I believe at ~hat time for Mr. Myers, who to check with the surrounding vicinity to see whether or not what the upper properties were going for. At which point I made another offer rounding it off basically, making it a little neater, just rounding it off. Where I was paying approximately, according to the other listings, approximately $200 more an acre. Q What was that total sale price? A 180,000 I believe. It would probably increase if the acreage was larger than said acreage because of a final survey. Q When was this contract supposed to be consummated or when was it supposed to be? A I believe in August of 2001. Q It is on the contract, is it not? A The agreement was signed June 5, 2001. Seller's written approval would be by June 8, 2001, on or before that date; and the settlement made on or before August 8, 2001, or a date of final subdivision approval. Q The final comment that you read I see is handwritten on the contract, and it is initialed? A accepted. was representing me, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Q be done, work? A Yes, I initialed it. Obviously, some additional subdivision work had to do you know if anybody or who was retained to do that From my initial contact it was Larry Neidlinger who was going to do the initial sub -- division or survey of the property. I had gotten in contact with Mr. Neidlinger and walked the property with him and made some comments to him at the time about doing some extra work that I would pay for because I was under the understanding that the seller would have to pay for the initial sub -- plot layout. Anything I wanted extra, like the two acres laid out for the little house that was on the property, you know, for that, plus any other subdivision that I wanted. So I was going to handle that out of my own pocket. Q Did you ask Mr. work for you? A contract, A Q price was? A Q Absolutely. Your initial Neidlinger to start any of that offer for the property, from the was how much, sir? 167,500. Was there any negotiating concerning what the final Repeat that. Was there any negotiating concerning that -- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 offer again was not But there agent to Mr. Dick. a counter offer, A I made the offer through Mr. Myers, he made the to I believe -- I guess it was Pete who made the offer It came back that -- no, I believe there but I can't quote you the amount, it is really written here period, so I can't come up with it. then I offered a second, and it was accepted. Q But you do recall somewhere? A Q that there was a counter offer in Yes. Just so that we are clear Q A property. property for sale. Q How was it that Neidlinger? A in this matter was whom? A The agent was Bill Myers. Who was Pete? Pete was representing Mr. I believe he was the on one point, sir, your Dick in the sale of the listing agent who listed the you became involved with Mr. Were you the person that chose Mr. Neidlinger? No. He was -- from what I understand, he was already chosen to do the survey of the property. It may have been the listing agency that asked him to perform the work, I don't know. (Plaintiff's Exhibit No. 2 marked for identification.) 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY MR. Can ROBINSON: Q Mr. Herman, I am presenting you with a document. you tell me what that document contains? THE COURT: Is this Exhibit 2? MR. ROBINSON: Yes, Your Honor, Plaintiff's Exhibit A Law Offices this case. BY MR. date? THE COURT: Go ahead, sir. Okay, it is a list of payments I made to the Turo for the hiring of an attorney to represent me in ROBINSON: Q What is the total amount that has been paid to A To date it is $4,840 for attorney's fees. Does that include the costs for today's trial? No, that does not include today's costs or any other cost following today. Q Have we spoken about what the cost be? A Q this particular project or have you incurred any additional debts with A Neidlinger, for today would Today, I believe it was $500 for today. Have you expended any other funds with regards to regard to this particular project? I have. I will have a bill coming from Mr. because of the work that he had done prior, and it 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is not complete, that to be over $3,000 for that. have expended other money. Whether or not I have yes. Q Are you at this of the contract? A Yes, I just stock certificates that order to sell them. for and I have not received that yet. I expect I can't say whether or not I lost money in the process, time prepared to complete your side need a few weeks in order to obtain I have and to give them to a broker in MR. ROBINSON: Those are all the questions this witness. THE COURT: Cross. I have BY MR. MILLER: Q Mr. Herman, CROSS-EXAMINATION I am going to refer you to this exhibit that is posted here, Dick, Lower Frankford Township, Cun~erland County, 2001, have you seen this document before? A Can I get up to look at it? THE COURT: Yes. A Actually, I haven't seen that exact document; it does show the layout of the subdivision that I wanted. also shows Mr. and it is entitled sketch plan for Paul PA, June 28, Dick's property showing a but It ten acre division for 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that. So I am familiar with basically the overall sketch. THE COURT: Are you going to have this marked? MR. MILLER: I do want to have it marked. I don't think he can substantiate what this is. Mr. Neidlinger is actually here in the courtroom today. THE COURT: Are you going to ask questions? MR. MILLER: I do, and I would like to have it marked. THE COURT: have it admitted later, MR. MILLER: Go ahead and have it marked and we can so that you can ask the questions. Ail right. (Defendant's Exhibit No. 1 marked for identification.) BY MR. MILLER: Q The sketch plan that we now have marked as D-l, you agree this accurately describes or close enough describes the the property that is the subject of the agreement boundaries of of sale? A Q Yes, I believe it does. I am referring to the upper left-hand corner on the left-hand side of this exhibit marked as D-i, and the dark blue line, is it your understanding that that approximates the boundary of the property? A I would believe so. Q I believe you had mentioned the house and barn 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 where Mr. Dick was living or using~, are those buildings referenced at the top portion of the property? A From what I can tell, yes. Q The mobile home that you had referenced that was being rented out, is that identified in the lower portion of the property? A Yes. Q Jumping over to the righ't-hand side, the upper portion of the property, it looks like it is identified by two different parcels, parcel A on the left and parcel B on the right, is that correct? A plan is marked into two separate lots, the right, is that correct? I can't see it from here. The upper portion of the property on the sketch A on the left and B on A that? A Q correct? A Q it, but there correct? Right. A, there is a designation of ten acres underneath Correct. B, there is a designation of 7 acres plus or minus, Yes. I think you mentioned it when you were looking at is no parcel D that is referenced on here, 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A ten acres, Q A the property you were buying? I was buying everything except portion A, which which is referenced within the contract. Correct. What was your understanding as to what portion of Was that your understanding when you had initially gone out to the property or -- is Yes. So your understanding has always been that what that you were not A represented by parcel A is the only piece buying? A Q So with either Mr. Correct. it is not true that you had any conversations Dick or with his power of attorney, his son, wherein they indicated that they wanted the entire upper portion of the property, which is represented by A and B? A I went according to the contract, according to what was said. The contract stipulates ten acres. Q I guess I am not asking you what is in the contract, but I believe you testified that before the contract was signed, you had gone out to the property at least on one occasion and had walked around the property? A Correct. Who was with you on that occasion? The initial walk was with Mr. Myers and 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Mr. Kafkalas. Pete Kafkalas. Yes. So you had both your agent and the listing agent with you on that? A Yes. The listing agent was the one that really knew the property boundaries. Q During that initial walk through, isn't it true that he indicated the upper portion of the property was going to be retained by the seller? A No, just the portion of the house and the barn, approximately ten acres. Q But it is true on the property, is it not, that there is a fence that I believe the lower portion of which is marked underneath the boundary for A but that actually extends through the woods that are referenced on parcel B and extends around the property, isn't that correct? A I have no idea if it extends around the property. I didn't walk the acreage that was with the house and the barn and that has nothing to do with it.. As far as I am concerned, ten acres is ten acres, the fence oan stay where it is. Q is marked as the lower line A If you say so. Q The fence as it is indicated on here is below what of A and B, isn't that correct? I guess, if you could .kook at the plan and tell me 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 what you think it says on there. A According to what I see on that sketch, the fence would be on the acreage that I would be purchasing. Q Was it your understanding either initially or after the contract was signed that that fence would be on your side of the line or on the Dick side of the line? It would be on my side. How many times, do you recall, were you at the A property? A where surveyor? A Q Approximately six altogether, sometimes alone. Q Do you recall having a meeting at the property Paul Dick and his son were present, as well as the Correct. Do you recall during that conversation that the Dicks had told you that they wanted the line below the fence? A No, they did not. What was said to me by I believe a third individual, other than Richard or Paul, there was another individual there and I don"t know his name, he said they would -- other than the ten acres, they would still like access to a small stream that was in the back portion of the property, Q right-hand side of the -- A I guess it would be, which would have been section B I believe. That stream, is that referenced over on the ye s. 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q You would acknowledge that there are woodlands that go across the lower portion of that area? A Yes, there is. Q Is there fencing that continues through that woodland area over towards the stream? A I didn't go into the woods that far to see whether or not the fencing continues or the condition of the fencing, if there is any. Q Okay, fair enough. Let me get back to parcel A and the designation of ten acres. Do you remen~er the first time that ten acres was mentioned to you? A I can't be exact, no, it has been over 2 years. Q Was it referred to you as ten acres or approximately ten acres or what was the initial reference that you -- A The initial reference was that Mr. Dick wanted to retain ten acres of property so that he could retain his house and his barn. Q Do you recall who told you that? A Other than it being listed in here, I believe my selling agent had also mentioned it. Q In the initial offer that you had made, was there any reference to the mobile home that is listed at the bottom of the property sketch? A What do you mean by reference? I knew it was 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 there. Q to know is document property, document? A Q Correct, I think you testified to that. A And I knew according to the contract that it stipulates that it stayed there and that they remain there. I knew it was there from the very beginning. I think you are jumping ahead of me. in the initial offer that was submitted, the that you would have signed offering to buy the was there any reference to the mobile home in that What I want So It was signed as such, so it was written on the paper prior to my looking at the contract and signing. Q Let me be more precise even, that paragraph on the bottom of page 1, was that part of your initial offer or was that added in subsequent to your initial offer? No, that was part of the initial offer, I knew it and I agreed to any and all terms that Mr. Dick had A was there, required. Q In looking at the bottom of page 1, I guess I am comparing the bottom paragraph that references the mobile home and the paragraph above that that is handwritten that references the subdivision of the barn and the house, those two appear to me to be different handwriting. Do you have any insight as to who put those paragraphs on the agreement? A I believe Mr. Myers put everything on that. 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Do property where Mr. me if I am wrong, the barn? A A Q wanting to you recall during your conversation at the Dick and his son. were with you, and correct that conversatior~ took place at the house and Correct. At the property? Correct. Do you recall them saying anything to you about retain the mobile home and keep the rent that was being paid by the occupants of that. mobile home? A No, sir. Q So if I told you it was their understanding according to the contract that they were keeping the mobile home in the area surrounding that from what was being sold, would that be a surprise to you? A That would be a surprise, paper right at the very bottom, buyer agrees to continue rental agreement with owners of mobile home on current land property. Q because it states on the But the current land rental agreement, correct me if I am wrong, specifies that the rent would be paid to the Dicks, isn't that correct? A That is not what the ingression was given. Q So it was your impression that that mobile home was being conveyed to you? 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Correct. Not so much the mobile home, but the people would be able to use the current land. Whether or not the mobile home actually goes with the property, I have no idea. As far as I am concerned, the mobile home was theirs. Q The mobile home was whose? A The people who were renting the property or leasing the property. Q Have you ever seen a written lease agreement? A No, sir. Q I believe you testified that the property that you were buying when you signed this agreement was undetermined, that there needed to be a survey done to specify the bounds of what was being sold, is that correct? Yes, because the ten acres would have to be A surveyed. Q ten acres, A Q ten acres, A Q listing agent, to be? A It is fair to say that paragraph says approximately is that correct? Yes, it does. So approximately doesn't necessarily mean exactly am I correct? You are correct. Did you have any direct conversations with the I think Pete Kafkalas is who we established that The only conversation I basically had with Pete 2O 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Kafkalas was on the first day when we looked at the properties when he walked the property with us. Q I believe you also testified that it was your understanding that the initial the seller, is that correct? A Q survey costs were to be paid by That is what I understand. Was there anything of contract that you are aware of that specifies that the seller was supposed to pay those subdivision costs? A It could be, but it has been over 2 years since I have looked at the contract and I would have to read the whole thing to give you an answer on that. Q You are not aware of any addendum to the contract though that would clearly lay that out? A I don't believe so. Q Other than the handwritten notations on page one of the contract, are you aware of any other handwritten additions or paragraphs dealing either with the survey or the mobile home? THE COURT: You mean documents other than this contract? MR. MILLER: Yes, or addendums that we don't have that would have been made a part of! the contract. A I don't believe so. BY MR. MILLER: 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q intent to build a A Q intention? A Yes. Q I notice I believe you testified also that it was your residence on the property, is that correct? Correct. Do you recall telling the Dicks that that was your on the sketch of the subdivision plan, again referring to the left-hand side, there is a dash box in the middle of what is marked as parcel E, which is the main parcel. Did that represent approximately where you anticipated the house to be built -- A At the time, yes, on what the architect who is good location. but that could change depending drawing my plans considers to be a Q So that was just an approximation in -- That was my initial when I looked at it, yes. It is just a dash dash line, so I don't think there is anything permanent there? A No, no perk test was done. Q Did you have any conversation with the Dicks about your intent to subdivide off the portion of the property you were buying? A At the time I don't believe I did. Q So they were not aware that you had any intent on subdividing? 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A I don't believe so, and the contract doesn't stipulate that I would have to tell. them. Q But you did tell them it was your intent to build a house on the property? A Yes. Q I believe it is correct that you told them that you planned on living there with your mother, is that correct? A Yes. Q Isn't it true also during that conversation with the Dicks that you told them it wouldn't be a problem keeping the property that they wanted to keep? A State that again. Q Isn't it true that during that meeting that you had with them, at the property, that you told them it was not a problem for them to keep the property that they wanted to keep? A They wanted approximately the ten acres, and I said that would not be an issue because that is not what I am purchasing. Q Again, your understanding was that it was ten acres, and that was it? A Correct. Q Let me also ask you about these attorney's fees, did you incur any attorney's fees prior to the litigation being started? THE COURT: Are any of those attorney's fees? 23 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 BY MR. MILLER: Q Are any of these attorney fees? A No. Q So it is fair to say that Plaintiff's Exhibit 2 represents the fees that you incurred as part of this litigation? A Correct. Q None of these fees include deed preparation or review of survey or anything else associated with the agreement of sale? A At the time, no, I don't believe so. If any of the fees were paid, they would have went through my real estate agent, it might have been part of the contract, I am not sure, I can't say for sure. Q So you don't remember if you had paid any fees -- A I just paid whatever the bill is. Q Just so I am clear, you testified that you expect a bill from the surveyor from work that was done? A I expect to get billed from him, yes, for the work that I asked him to do, regardless of whether I get the property or not. Q But you have not paid that bill yet, is that correct? A No, sir. Q What other out of pocket costs do you have? 24 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 about, Q deposit, A Q A A I would say it is not a The agreement does is that correct? Whatever it says. Excepting for transportation, concern. reference which I don't care that you paid a $2500 Has that been returned to you or is that still -- Nothing has been returned to me. MR. MILLER: THE COURT: MR. No further questions. Any redirect? ROBINSON: One or two questions, Your Honor. REDIRECT EXAMINATION BY MR. ROBINSON: Q The paragraph 5D of the contract that you have there, can you read the very last line on it for me, it concerns the acreage of the subdivision? A You said 5D. Q Section 5D. A It says: Since subdivision is incomplete, offer is $2571.43 per acre and final price will be based on number of acres times -- it would be $2,571.43. Only subdivision will be approximately ten acres and containing house and barn, per seller's request. Q In section 2 where it states how much you are actually purchasing, what does that say? 25 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Road, document 3. A Section two it 70 plus or minus. MR. ROBINSON: that I would like to have marked Piaintiff's says: 70 plus acres of 671 Old Mill Your Honor, I have one other Exhibit (Plaintiff's Exhibit 3 marked for identification.) BY MR. ROBINSON: Q Mr. Herman, what I just presented you is a document entitled statement of estimated cost, have you ever seen that document before? A Yes, I believe I have. Q You have, okay. Can you tell me what I believe it is line 17 states? A It says survey and subdivision plan estimated. Q Is there a cost listed there? A $5,000. Q Who is that document signed by? signed it. MR. MILLER: THE COURT: Objection,, he can't testify as to who He can read what the signature is. Whether it is signed by the person,. I agree. He can read what the signature is. BY MR. ROBINSON: Q Can you read the signa~ure on the document for me please? 26 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A seller, Paul, I think it witness is P. N. Kafkalas. MR. ROBINSON: THE COURT: I believe it is -- there is a witness and then the is E. Dick is the seller, and the That is all I have. Any cross? No, Your Honor. Sir, you may step down. Next witness. Your Honor, MR. MILLER: THE COURT: ten minute break. (Recess.) THE COURT: MR. ROBINSON: Pete Kafkalas to the stand. Let's take a I would like to call BY MR. PETER N. KAFKALAS, having been duly sworn, testified as DIRECT EXAMINATION ROBINSON: follows: Q you tell me what your initial Sir, state your name for the Court? Peter N. Kafkalas. Spell your last name? K-A-F-K-A-L-A-S. Mr. Kafkalas, what is it that you do for a living? Real estate agent. In the case that we have been discussing today, can role was? 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A I was the listing agent the sale of his property. Q property? representing Mr. Dick in How did you become the listing agent for this A Mr. Dick walked into the office one day and I was on duty and he talked about wanting to sell the property, and that is the way we started working together. Q How did he get to your office? A He drove. Q In the course of the first meeting, obviously, he would have had to describe the property to you, did you visit the property with Mr. Dick? A Yes. Q You walked the property with him? A Yes. He drove. I met him there, and he showed me the general boundaries of what he had in mind to sell. Q How did you understand what it was that he had to sell, can you describe the property generally? A Using the exhibit? Q If you like. A Okay. My understanding of the sale was that Mr. Dick wanted to keep the lower portion with the barn, the house, and actually portions A and B I understood were most of what he wanted to keep. There might have been some question about the far end of parcel B. But generally, the fence line, 28 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 he wanted to keep below, the fence line. Q A Q and he wanted to sell everything above How was that described to you? Sorry? How was that described to you, the part that he wanted to keep? A Just that he wanted to protect the house and barn and that lower portion for his son so that he had a place to live. The mobile home would be sold, but he just wanted to protect the people that were renting there now, and so he didn't want the new owner to throw them out. So he said, I would prefer that we put in the agreement at some point in time that they be protected by the perspective new owner maintaining the lease indefinitely until they cancelled. Q At that time did you complete any documents, did you have any documents signed by Mr. Dick to officially make you the agent? A Not on that particular day, but subsequent to that visit to the property we did write out a listing agreement and Mr. Dick took that listing agreement and he said I won't sign anything until my lawyer reviews it and that is what we did. Q So he took the listing agreement unsigned away from the office? A Yes. Q Your impression was that he wanted to show it to 29 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 his lawyer, A where we Q you? A did he mention who the lawyer was? Yes, I understood it to be Mr. Irwin, and that is left it. How long was it before the contract was returned to I recall something 30 to 45 days, it was a long period of time. In fact, I was actually surprised that Mr. Dick came back, because I thought with that long of time he probably changed his mind, but he did show up one day with it. Q Are there any amounts listed in the contract? What were the parts of the listing agreement? A The commission, the length of the contract and any terms and conditions. Frankly, I can't remember the listing agreement as to whether we wrote those protective mechanisms into the listing agreement, but he certainly made them clear. Should a subsequent -- I think those contingencies were listed in the multilist to make it clear to everybody. Q Was there any discussion about the asking price on the property? A Yes. Q can you tell us about that? A The day that we signed the listing agreement, he had a gentleman by the name of Jeff Scott with him. Mr. Scott said, Look, every now and then I accompany Paul just to help him out. So we discussed the asking price. Mr. Dick wanted to 30 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 initially list the price at $325,000 for the 70 acres plus or minus without the barn and everything else. I said that is too much, no one will ever really look at it. So we went back and forth and finally agreed that, look, let's go with the county tax assessment value for the property, which was about $3700 an acre. I said that would probably bring us -- so I think the listing price was 250,000, 260. THE COURT: Sorry, I lost those figures. The assessed value per acre was 30 -- A The assessed value according to the county was about 37, $3800 an acre, and so that is what we use as a general guideline for the listing price. THE COURT: The listing price turned out to be what, if you know? A I don't recall the exaot figure, but I think it was somewhere around 250 or 260, because we subtracted the barn and the value of the barn and what the county said, plus the acreage with the barn from the total. The only thing I recall very specifically telling Mr. Dick though is that, look, even listing the property at 250 or 260 was much too high and that he would be lucky to get 2,000 for the property given what ]_and was going for out there at the time. BY MR. ROBINSON: Q Roughly per acre, what was land going for out there 31 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 at that time? A Roughly 2,000 an acre, roughly, you know. Q Your conversations and negotiations were with Mr. Dick himself? A Yes. Q Was anybody else actually helping in the negotiations themselves? A Are you now on the listing agreement or into the contract? Q Well, either, but listing agreement was my primary A No, Mr. Scott kind of observed, it was more or less between Mr. Dick and myself. Q In the pleadings prior to our trial here, there was mention that Mr. Dick might not have been knowing what it was he was signing or capable of understanding what it was that he was doing when he signed these contracts. How did you find Mr. Dick in the course of the negotiations through your conversations with him? A He seemed to know what he wanted to do. When he listed the property, he had certain things he wanted to do. When we walked the property, he knew the boundary lines. So from my standpoint, at least through the listing agreement and walking with him and talking with him, he seemed to know what he was doing and I didn't get any indication that there was 32 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 anything amiss or sometimes Mr. Dick. Q confused. Mr. and tell stories, but Mr. Kafkalas, Dick would like to stray I just took that to be what I am handing you now is marked Plaintiff's Exhibit 1. A Okay. Q Have you seen that land before? A Q itself? agreement for sale, the vacant Yes. What if any input did you have to that contract A Well, once we got the offer, I asked Mr. Dick to come into the office and we went over the initial offer. We went over what -- all the details. Based on the initial offer we wrote in to continue to agree wJth Mr. Dick's desire to protect the mobile home renters is -- that the buyer agrees to continue current land rental with the owners. In other words, Mr. Herman was supposed to allow them to stay there and pay rent; but because he was owner of the property, he was supposed to get the rent. We also agreed that the price -- THE COURT: Who was to get the rent? A the rent. A The new owner of the property was supposed to get THE COURT: Okay. The only desire Mr. Dick had was that they were not 33 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 going to be thrown out with the new' owner. We then talked about the price, and I said, I think you probably ought to counter, I don't think you ought to accept the initial price. verbally until you get a counter was $200,000. BY MR. ROBINSON: Q A Q A Q A about that. It is my practice to do things final contract price. I believe our Backing up, what was the initial offer? The initial offer was ]_68. The counter was for? We went back to 200. What happened then? They came back with 180. Mr. Dick and I talked I said, you know, that is really not a bad price going in. I would like to get a lJ_ttle bit more, but I am not sure that given the value of the land it's got to appraise, 180 is a good figure, it would cover your costs and then some, so we agreed to that. Q Mr. Dick was in agreement to that amount? A Yes. Q Did you ever walk the property with Mr. Dick and Mr. Neidlinger? A I walked the property with Mr. Dick. I recall meeting Mr. Neidlinger out there at one time. I didn't walk the entire property with him, we just talked about the fence 34 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 line I believe. But those are the only two occasions. Q After the contract was signed by both parties, what happened to the contract itself? A It is my practice to ask whether the client wants a copy or whether he just wants us to keep it in the office. can't recall whether Mr. Dick took a copy or not, but that is my practice to ask him. Q Were you involved with any of the subdivision work that had been planned according to the terms of the contract? A No, not really. I had some conversations with Mr. Neidlinger over the phone, but generally speaking, I was not. The reason being is that work had started but by the time -- eventually, Mr. Neidlinger said, Look, I need for you to go in and get a permit, so I had to call Mr. Dick and say if it is time to begin spending some money on the subdivision plan, I need $700, we need to go get a permit. That conversation is the day that Mr. Dick said, I am w~ry unhappy, and hung up the phone and that is basically it. Q Backing up a little bit, did you contact Mr. Neidlinger? A I did not, no. Mr. surprised -- a day or two after said I understand Mr. he heard that from Mr. Mr. Dick's lawyer. Neidlinger learned by the contract, Dick, and I said, okay. Irwin, who at the time -- I was contacted me and And I understood I thought was 35 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q Mr. Kafkalas, I am goiu. g to present to you what is marked as Plaintiff's Exhibit 3, a statement of estimated seller's costs, have you seen that document before? Yes. Who completed that document? I did. Can you read I believe it is line 17 to me? Yes. Other: Survey and subdivision plan estimated A A $5,OOO. Q A Q A Q A Who signed that document? Mr. Dick. Were you present to see him sign that document? Yes, I was. When would that document have been signed? That was signed at the time prior to making a final agreement on the contract. This is done so that you can see the estimated proceeds before he makes a final decision that $180,000 was okay. Q That document was signed prior to the signing of what is marked Plaintiff's Exhibit 1, sale? A Q work would have to be done and that him -- which is the agreement of Yes. Do you believe Mr. Dic]< understood that subdivision it would be charged to 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes. Q -- that he would be paying for it? In your discussions with Mr. Dick, had you ever discussed any of the particulars with regards to subdivision or even the fact that, obviously, a subdivision would have to take place since it is written into the contract? A We discussed the fact that because he was breaking up the property it would have to be subdivided; and because he was making that decision, he would be responsible for at least that subdivision part of it, yes. Q During these discussions, did you find Mr. Dick to understand what you were talking about? A Yes. MR. ROBINSON: Those are all the questions I have, Your Honor. THE COURT: Cross. (Defendant's Exhibit No. identification.) 2 marked for BY MR. Q Exhibit No. counsel, A CROSS-EXAMINATION MILLER: Let me show you what has been marked as Defendant's 2, a copy for Your Honor and a copy for opposing can you identify this document for the Court? Yes, it is the copy of the listing agreement. 37 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Would this be the listing agreement that you had referenced earlier in your testimony? A Yes, it is. Q Can you identify for the Court what the listed price on that agreement was? 250,000. How is the property described in that listing? I don't know if we... COURT: Give him a hint where it is. A Q A THE BY MR. MILLER: Q I am looking still under paragraph 1. A Okay, 671 Old Mill Road, Newville, with the parcel number, so it was the entire farm, yes. Q Is there any indication in this listing agreement or addendum to this listing agreement that would reflect what exactly Mr. Dick intended to keep from that property? A Not in that listing agreement. Subsequent to that it would be in the multilist because it had to be for perspective purchasers to know what Mr. Dick was looking for. Q But there is nothing in this document that says -- A No. Q -- one way or the other? A No. Q I believe you testified you and Mr. Dick had walked the property? 38 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes. Q I think you had this backwards, but during that conversation Mr. Dick indicated that he wanted the property above the fence line to be retained by him, isn't that correct? A My understanding was, yes, pretty much where the fence line that separates E from A and B was kind of a dividing line. We had a problem trying to get down and really for me to understand parcel B as it is on this exhibit; but generally speaking, yes, the fence line was kind of the line of demarcation. Q What kind of condition exists over from the fence line going across? A Are you talking -- Q In other words, what is on the property -- A It is pretty much wetlands, it is not really good for anything, so it would be protective one way or the other, but that is about all I remember. It was further back, and I had a tough time trying to figure ()ut the size of it, because I didn't know the width of the property. We didn't really explore A and B. We only went from the fence line, because that is where he wanted to sell, up into where that exhibit shows parcel E. Q Did he tell you why he wanted to use the fence line as a dividing line? A I don't recall. I think I understood it to be it 39 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 was just part of what he wanted to go with the house and barn. Q Is it fair too also there is a tree line that extends along the property -- A Yes. Q --or along the line with A and B? A Yes. Q It looks from the sketch line that the fence line is on the other side of the trees, in other words, the trees would be back behind the fence line going up towards -- A For the most part, yes.. house -- A for the most part BY MR. MILLER: THE COURT: Going up towards what? The barn and MR. MILLER: THE COURT: -- is MR. MILLER: Yes. THE COURT: Is that Yes, that the trees of the fence. The northern part of the property. that what you are saying? your understanding? are on the house and barn side Q Did Mr. Dick say anything in addition about the stream that is on the eastern boundary of the property? A We talked about the stream, but I cannot recall that there was any attachment to it, other than just keeping it as part of the house and barn. Q I guess my question, my primary question then is 4O 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 where did this ten acres designation come from? A Well, it was, obviously, pretty bad eye calibration, because I didn't know what the width of the property was, I thought it was thinner. A and B, if I can point this out, I didn't know how far this went over, so as I was looking at ten acres, I was thinking it was this way, so the plus or minus ten acres was supposed to be A and B. It turned out later that the ten acres was a little underestimated; but that is the way I understood it and I think that is the way Mr. Dick understood it. Q How would you have comr~unicated the ten acres, would that have been on the multilist? A Yes. Q Would that have been what Mr. Myers was operating under or would you have had a separate conversation with him? A No, that was to all perspective agents and buyers, so it was in the multilist. (Defendant's Exhibit No. 3 marked for identification.) BY MR. MILLER: Q Let me show you what has been marked as Defendant's Exhibit 3. A copy for Your Honor and opposing counsel. Can you identify this document for the Court? A Yes, this is the statement of estimated seller's costs made at the time that we listed the property so that he 41 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 could get an from the at the Q idea if it went full price what he would receive sale. So this document would have been prepared or signed same time A Q A as the listing agreement was signed? Yes. And this reflects a sale price of 250,0007 Yes. THE COURT: This is a different exhibit than Plaintiff's 3? MR. MILLER: THE COURT: before? A at the time Correct. What was that, you identified that Plaintiff's Exhibit 3 was the seller's cost sheet of the sale giving him the exact price. THE COURT: At the sale. A This is the listing that is estimated based on if he were to get full price. BY MR. MILLER: Q I believe you testified sort of to the chronology as to your meetings with Mr. Dick, I want to make clear, when you prepared this initial estimated sheet, it was still your understanding that that was not going to be for the entire property but only for the property below what Mr. Dick intended to sell? A Correct. 42 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q I guess my follow up question then: Why the difference between 250,000 and ultimately what was approximately 180,0007 A Because the listing price was unrealistic, but it was what the seller wanted to list the price at. We as agents have to make a decision whether we want to mark the property at that price and see if it sells. We agreed to list it at that price but I told him, again, if you get somewhere around 200,000, because it is not going to appraise at 250,000, but he wanted that, so I made a decision to go ahead and list it at that. Q What was the time frame between the listing of the property and the initial offer, do you recall? A Just looking at the documents, it wasn't very long We signed the listing agreement on the 22nd and the initial offer came in on the 5th. BY MR. THE COURT: A Yes, sir. THE COURT: MILLER: Q A property? A 22nd of May? Yes. Okay. The initial offer was June 5? The initial written offer received was June 5. Had you received any other offers to purchase that I actually had a request about a week later after 43 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 it was under contract and the agent said if that falls through, let Mr. Dick know that I have a prcspective buyer that is willing to offer 150,000. Q I believe you testified that there was a gentleman with Mr. Dick at one of the initial meetings? A Yes. Q When you received the lnitial offer on the property, do you remember, was there anyone else with Mr. Dick when you reviewed that with him? A No. Q Was there anyone with him when he signed the agreement of sale? A No. Q Let me jump to the agreement of sale. Do you have that in front of you? A Yes. Q It should be Plaintiff's Exhibit 1. Do you recall if this agreement was ever provided to Mr. Irwin or did you have any conversations with Mr. Irwin about this? A my memory is that was his lawyer, I I do not recall. The only thing that strikes me ir at the time of conclusion, because Mr. Irwin went back into the file to determine whether I faxed -- there is no fax confirmation -- but to my best recollection I may have faxed Mr. Irwin a copy after asking Mr. Dick if he wanted one. But I can't confirm that, so I 44 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 don't know. prior to the contract being signed? A No. The only thing that was not done over -- in the same day, That is just my best recollection. You don't recall any cenversations with Roger Irwin I do recall is that this it was done over night, and my assumption is that if Mr. Dick had any questions, he would have talked to his lawyer, but he didn't indicate that. But it was not on the same day that we made the decision, so this was about a two day process I believe. Q Something that is a little curious to me, and maybe you can clear it up. As I look through pages 1 through 4 of the agreement of sale, and looking at the initials which appear to be PED, which I presume would stand for Paul E. Dick, those appear to be printed initials. Then as I look through pages 5 and 6, I guess 5, and then 6 is the signature, but the initials on page 5 look different from the initials previously. Do you know why that would be? A No. Q Is it your recollection that Mr. Dick though had put those -- those are his initials and not someone else's? A Yes, they are his, in other words, he signed it all at the same time, he turned the pages over. Why one page is different than another, I don't know. Q When you got the initial offer, and I presume it was Bill Myers that delivered that to you? 45 1 2 3 4 5 6 7 8 9 l0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes. Q When you not the initial offer and it said ten acres, approximately ten acres on there, did that match up with your understanding that that was going to represent the property at the northern part? A Yes, that paralleled or was very similar to what the multilist said, which is where he got that from. Q When the initial offer came in, do you recall that a paragraph below, was that included as part of that initial offer on June 5? A The paragraph below that has the printing buyer agrees to continue current land? Q Yes. A No, it was not. That is my writing and that was part of a counter to insure that the perspective buyer knew what he had to do. Q Again, it is your understanding that Mr. Dick's only concern was that the people renting that mobile home would be allowed to stay? A Yes, that is my understanding. Q So it is not your understanding that Mr. Dick intended to keep the rent from the mobile home? A It is my understanding he did not intend to keep the rent. He just wanted to proteot them and it was going to be part of the sale. 46 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Do you know, was there was a lease agreement with Q the mobile home or had you -- A I asked for a lease agreement, I don't recall if I saw it. I am not even sure that there was one in writing at the time. My best recollection was that there wasn't. That is why I never got the copy of it. Q I guess as I read that language, all that really says though is that the buyer is going to take the property subject to whatever lease agreement there is, is that correct? A Yes, in other words, just like most investment properties, he is going to absorb the renters at the current terms that they have for an indefinite period of time until they cease the lease and then he can do with the land what he wanted. Q But if there was a lease agreement and they are renting on a monthly basis, after a month period of time the buyer could turn around and say -- Whatever the agreement was in place at the the buyer was going to have to continue that in the mobile home decided otherwise. That was my understanding and that is what the wording was supposed A Yes. time of the sale, until the renters as you testified, was to this language does not it only says they stay to mean. Q But if Mr. Dick's intent, keep those renters there indefinitely, say they could stay there indefinitely, 47 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 there subject to whatever terms they are staying there now? A Okay. Your point is well taken. So, yes. Q If this language hadn't been in there, it would still hold true, I mean the agreement would provide that the buyer would take the property subject to whatever lease agreements would be on it? A Well, yes. Unfortunately, I am not a lawyer, Mr. Dick and I agreed that this was the best wording that we had at the time to protect the renters. Q Just to be clear, the survey that we have currentl~ marked as Defendant's Exhibit No. 1, that was not started prior to the agreement being signed, correct? A Right. Q This was done after the agreement was signed in anticipation of defining the boundaries as to who was keeping what? A Yes, in fact, really seen this document, county map plot plan of what was working off the Q A Q this is the first time I have ever I never really saw it. We were currently the The tax map? Yes. Getting down to Mr. Dick and his state of mind, I think you said you thought he drow~ to your office when he first contacted you about selling 12he property. Do you know 48 1 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 that he drove to the property or you just assume that? A No, but subsequent to ether meetings he drove there. He drove to the office to meet me on several occasions, so I know that he drove during the process. Whether he drove on that initial meeting or Mr. Scott drove him, I do not recall. Q When you would ask him direct questions as to what he wanted to do with the price and things like that, was he able to respond to you clearly? A Yes. Q Was there ever a point that you were confused with what he was suggesting or desiring? A No, not necessarily confused. and forth a little bit; but that is normal transactions, people want to understand, I want to understand, so you go back and forth a little bit. But, no, not unclear. Q Did he tell you that at the time he had a power of attorney for him that was helping to manage his finances and But we would go back in most real estate things? A Honor. He did not, I MR. MILLER: No further questions, THE COURT: Any redirect? MR. ROBINSON: was not aware of that at any time. Your Honor. Just one or two questions, Your 49 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 REDIRECT EXAMINATION BY MR. ROBINSON: Q According to our plot plan, do you know what the size of parcel B is? A The size of parcel E is? Q B. A I just looked at it for the first time back there, and it is approximately 7 acres. Q 17 acres? A So the combination of parcel A and B then would be 17. MR. ROBINSON: That is all I have, THE COURT: Any recross? Your Honor. RECROSS-EXAMINATION BY MR. MILLER: Q As we now have the plot plan, if A and B were goinG to be retained by Mr. Dick, how would that effect the purchase price of what is marked as E? A If A and B -- then he would get a little bit less, because he would be keeping more acreage. Q Because the agreement of 180,000, actually below it says it is A Correct. Q sale, even though it says a per acre price? So the 180 was actually an estimate as to 50 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 approximately what you thought was going to be sold? A Based on the 70 plus or minus, correct; but the 2500 price per acre was still a very good price in the end. MR. MILLER: No further questions, Your Honor. THE COURT: You are excused if you wish to be. That means you can leave if you want to leave the courtroom. You may stay or leave. Next witness. MR. ROBINSON: Your Honor, I would like to call Bill Myers to the stand. WILLIAM R. MYERS, having been duly sworn, testified as follows: DIRECT EXAMINATION BY MR. ROBINSON: Q Sir, could you state your full name A William R. Myers. Q Mr. Myers, what do you do for a living? A Real estate. Q Can you tell me how you are involved in this particular transaction? A Mr. Herman called into the office while I was duty inquiring about the land, and we made an appointment the following day to go look at it. Q Did you then visit the property and walk the property with Mr. Herman? for the Court? on for 51 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes, we did. Who else was present then, sir? Pete Kafkalas also showed up and pointed out the various property lines as had been pointed out previously to him by Mr. Dick. Q What was your understa~ding of the arrangement that was being made with regards to what property was being sold? A We were looking at it from the point of the fact that the house, barn and approximately ten acres would not be included in the sale, and that Mr. Herman was just buying approximately 70 plus or minus acres of land. Q Did you have occasion during this transaction to meet with Mr. Dick? I did not. Did you ever see Mr. D~ck when you were at the On one occasion when the surveyor and Mr. Herman and myself were there, we did see Mr. Dick and I believe his son at the property. Q I believe in front of you is an agreement marked Plaintiff's Exhibit No. 1. A Yes, sir. Q Can you describe that document? A This is the sales agreement that was ultimately consummated between buyer and seller. A property? A 52 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Who actually wrote up the document? A Myself, Bill Myers. Q With regards to the sale price, I see the initial sale price, and it has been determined it was $168,000. How did the negotiations for the ultimate sales price come to be? A The 168 was the initial offer that Mr. Herman made on the property. I can't confirm that the verbal counter offer that came back to us was 200, it was in the 200 range and we countered at 180,000. Q Were there any other changes made in that counter offer? A Yes, Mr. Dick, obvious[Ly, decided that $500 was an insufficient deposit and asked within 14 days that we supply an additional $2,000. The counter came back with the verbiage at the bottom whereby the current rental agreement on the mobile home would continue. Q So the $2,000 written on paragraph 3C then, was that during the counteroffer? A That is correct. Q What was Mr. Herman's reaction to the counteroffer as presented? A We had done some analysis of other properties that had sold and we thought that we were -- the 168 was a good offer. We discussed whether we were going to go any further. We talked about a little higher price, and then Mr. Herman 53 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 decided on 180,000 and told me to go back and tell them that that was his final offer. Q Did you have contact with Mr. Neidlinger in regards to the subdivision? A The only time I met Mr. Neidlinger was after he was involved in the process and he had contacted us, I guess Mr. Herman actually, to meet at the property and walk the property lines, figure out the placement of the house, look for where we might do perk and probes. Q Who was present at that particular walkthrough, was it just the three of you? Just the three of us, Mr. Herman, Mr. Neidlinger A and myself. After that were any meetings held with regards the subdivision plan that you attended? A I can't tell you the date. planned for Mr. was there, Pete was supposed to attend. did not show up. to There was a meeting Irwin's office where Mr. Neidlinger I believe there, myself, Mr. Dick, and his son were The meeting was held, Mr. Dick and his son Q A transaction going to continue. I can't that was discussed at that meeting. MR. Did anything take place at that meeting -- Other than general discussion of was the think of anything else ROBINSON: Those are all the questions I have. 54 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 THE COURT: Cross-examine. BY MR. MILLER: Q Mr. CROSS-EXAMINATION Myers, do you recall exactly what the multilist said as far as what property the seller was intending to retain? A 70 acres plus or minus -- oh, I am sorry, retain? Q Yes, retain, in other words -- A It didn't say it that way. It had what was for sale was 70 acres, approximately 80 acres, save ten. Q wanted to plus or minus. The property being the deduction was that he wanted to But there was nothing in the multilist that said he keep from the fence line up or keep the current farm or barn property or anything other than what was being sold was plus or minus 70 acres? A No, there was not anything else in the multilist that said anything different. Q When you had gotten the response back from Mr. Kafkalas with regard to the mobile home, what was your understanding as to the additional language that was put on to the agreement? A That the assumption was that that parcel was part of the sales agreement and that the people that were living in 55 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the mobile home would be allowed to stay there under the current terms of their verbal or written lease until they would decide they didn't want to. Q were you aware at the time of whether there was a written lease and had you seen that lease? I was not aware, I had not seen anything. you don't know what the terms currently were A Q So then in place? A Q I don't even know what the amount being paid was. But it was not your understanding that Mr. Dick was also desiring to keep that mobile home as well as the rent that was coming from that mobile home? A No, it was not. Q Do you recall seeing what has been marked as Defendant's Exhibit 1 before today? A Yes. Q When was the first time that you would have seen that exhibit? A Through Mr. Neidlinger,. but whether it was him delivering it to my office or me picking it up somewhere, I cannot recall. Q What conversations, if any, did you have with Mr. Herman once it was determined that the ten acres did not extend all the way to the eastern boundary of the property, but that there was actually what has been designated on the plan as a 56 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 parcel B, plus or minus 7 acres? A I think by the time we got this document we were all concerned about the fact that Mr. Dick had ceased discussions with us, so that we were more concerned with the transaction than the boundary line at this point. Q Do you recall any conversations with your client with regard to the fence that was designated as being below that line? A When we were out there with Mr. Neidlinger at the property we talked about the fence, I have no recall of the substance of that discussion. MR. MILLER: No further questions. THE COURT: Any redirect? MR. ROBINSON: No, Your Honor. THE COURT: Sir, you may step down, you are excused if you wish to be. Next witness. MR. ROBINSON: Your Honor, I wish to call Larry Neidlinger to the stand. BY MR. Court? LARRY NEIDL[NGER, having been duly sworn, testified as DIRECT EXAMINATION ROBINSON: Q Sir, please state your name, full follows: name for the 57 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A and marked as Defendant's Exhibit No. A Larry Neidlinger, N-E-I-D-L-I-N-G-E-R. Mr. Neidlinger, do you recognize what 17 is up there Yes, I do. Did you prepare Defendant's Exhibit 17 Yes, I did. How were you contacted and by whom were you contacted that A drawing, I resulted in this particular drawing? Well, I really wasn't contacted relative to the was contacted to do a survey. I happened to be in Roger Irwin's office on some other business and he told me that Mr. Dick was going through a transaction that needed a survey and gave me Pete's number to call, Pete Kafkalas. Q Did you have any details concerning what the transaction was that required the survey? A I don't believe I had any detailed information at that point in time until after I talked to Pete. Q So who was it that gaw~ you the details? A Pete gave me the details about what it is that my services were needed for. What were you told, what were your services needed Q for? A Well, as I understood it, Mr. Dick was selling a portion of his farm. Of course, in order to do that, you needed a survey in order to remove the portion that he was not 58 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 selling from the portion that he was selling for the purposes of deed transfer. Q What did you understand was the portion that he was not selling? A In general terms, what I understood is he was desiring to retain the house and barn and approximately ten acres. Q With regards to Defendant's Exhibit 1, exactly what is that, what are we looking at? A Well, in the left-hand side of the drawing, now this is a sketch plan, the purpose of this was, is to say, here is the work I have done to date on this potential subdivision, and in order to have a discussion it is important to have a little drawing to identify where things are and what was what relative to it. So it is not a cor~lete piece of work, it is merely a work in progress sketch, if you will. On the left-hand side is a drawing of the complete property, and it shows the boundaries of the complete property, and then identifies it into three believe is what we put on that, I totally. tracts, A, B, C, and E I can't see it from here, Then on the right-hand side is a blowup of A and B to more fully discuss the issue, the issue being is where are the property lines to be placed for the separation. Then below that is a separate drawing of tract C, 59 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 blowup of C. Ail of these would eventually be used in a formalized subdivision plan that would be submitted to the township for approval; and then, finally, if it were all done, a deed transfer. Q Does this entire sketch plan concern strictly the subdivision of Mr. Dick's lot for the sale to Mr. Herman? No, it does not. A A Well, land to be sold, What else is included, sir? when I started the project to identify the I met with I believe Bill Myers and the individual buying the property, Mr. Herman, and he had indicated that he was interested in having a separate deed for the property of which the mobile home was sitting on. And he wanted to know -- as anyone would have a discussion -- how do I go about doing that in this county or this township. I said, Well, in my mind it is just as easy to do it as one subdivision; and therefore, I included that as part of the project I was doing, but now I essentially had a second client. Mr. Herman became my client in the subdividing of the two acres where the mobile home was located. In addition, because to do a subdivision plan you needed to take a perk and probe to show that the land being subdivided was capable of being built upon; and I said, you know, if we are doing this, since we have the party that is buying it here, let's take the perk and a probe where it would 60 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 be appropriate to put the house so it is functional for his future need. So we got involved in identifying a potential perk and probe site. That was kind of for both people, because it had to be done in order to do the subdivision for Mr. Dick. But we put upon that Mr. Herman's desire of where he wanted a house so it would be functional for him, so it kind of fit both. In addition, Mr. Hermar], because he was buying the property, was very interested in property line boundary lines. We were preparing and I think did some work to identify intermediate -- usually, when you sell off a large tract of ground or subdivide or survey, you worry about corners. Mr. Herman was interested in, well, the corner is here and the corner is there, but what happens between that straight line. So we did some extra work to identify intermediate points along the property line so he had a very good indication when we were done where his boundary lines actually were even in between the oorner points. Q So was it your impression then that what is listed here as parcel C was actually part of the tract being sold to Mr. Herman? A Parcel C only became parcel C because Mr. Herman wanted to separate it from the other property he was buying. So, yes, there was no other discussion about that as far as 61 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 making it separate, it was part of what he was buying as I told. Q You have identified that there is parcel A, B, and I believe E. being sold to Mr. A Well, was C Of those, which parcels did you believe were Herman? all parcels on that drawing were being sold to Mr. Herman, except for A, as my understanding, with the caveat that where A extended into B or into E was yet to be determined. And that was the purpose of the sketch plan to say here are the physical features we found by survey, now where do the parties desire the final line for deed purposes to be. Q Okay. So the lines between A and B and the line between A and E could move; but other than that, the rest of it you believed was being sold to Mr. Herman? A Absolutely. Q Was there any discussion with regards to the fence? A The only discussion with regard to the fence I believe occurred with Mr. Herman. I did not draw the line on the fence, the fence was never giw~n to me as a criteria for subdivision or development, subdiw[sion of the property. What we were trying to obtain is adequate room around the~dwelling to be feasible for an occupant to live there. The other concern I had that never actually got discussed is what property would be required if the township desired to investigate the sewage disposal for what would be 62 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 residual tract or the house and barn. In other words, in many townships, I think back then even, they would want a sewage: enforcement officer to ensure that if you sold off all this other property that you had adequate space, a suitable site for sewage disposal. We never actually got to that part of the issue of resolving that. But all I did, the lines I actually drew on there had to do with reasonable space around the home, no criteria, other than that, other than the ten acres and including the house and barn were given. In all due respect to everyone, A and B parcels in there are extremely difficult pieces of ground to estimate how many acres are there. Now, possibly a farmer would, but it is a lot of marsh land and woods and trees grown up all over the place. So to say this is ten acres by someone even knowledgeable in real estate, I think it was an impossibility; and that is why I was employed, is to help define that. Q In your entire process had you met or had any discussions with Mr. Dick? A On one occasion I was out on the property and -- I drove in the driveway of where the house and barn was located and Mr. Paul Dick was there. I went up to him and introduced myself to him and kind of explained to him what I was doing and why I was there and why my people were there and that kind of stuff. 63 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q A discussion, okay. In other words, What was his reaction? His reaction is, was basically, okay, no other no actual engagement of any type other than saying, I got a fair enough opinion that it was okay for me to be there and be working, that was about it, did I ask anything other than that at that point either. Q with Mr. A nor During this process, did you have any discussions Dick's son, Richard Dick? Yes, Richard or another individual I believed to be an associate farmhand or employee or friend I believe were on a tractor or working around a piece of equipment between the house and the barn. I went up and approached them and introduced myself again and said what I was doing and that I was following through on the survey. Q Who was making those decisions that had been made concerning the subdivision plan, the project as a whole, or the sketch plan that we are looking at? A Well, I made the decisions -- I ran into a problem with trying to finalize this to get the decision as to where somebody wanted these lines. talked with Bill about it. so I said, A solution is, I talked with Pete about it, I I talked with Roger about it. And let me make up a sketch plan and we will all sit down and I will show as many features as I think is reasonable anyway and we will see if we can't get a decision and I will follow through and finish it. 64 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to get to a mind. Now, that was my decision based upon logic of how closure of what ten acres plus or minus was in my The other information given about this at the beginning came from Pete. Plus property, here is the -- then I courthouse, of course, as consisted of. As Roger and said, or minus ten acres, survey the got everything out of the to what the property actually I couldn't resolve exactly what it is, I went to Hey, the only logioal solution is get everybody in here, and I will make up the and somebody draw up the lines. Q A Mr. Dick. sketch plan and let's sit down Did that meeting ever 'zake place? Sort of. Everybody came to the meeting, except We were sitting there and -- that is the first time those drawings were actually shown to anyone, because I made them up for that meeting. I took my notes and ewerything we had acquired out in the field and came up with that drawing. That is the first time it was displayed and it was made as sort of a decision making tool so everybody could visualize what it is they were trying to accomplish. But Mr. Dick did not show up at that meeting, and the meeting -- it was kind of said,, well, let's see what happens from there and I packed up and went home. 65 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q In this process, who was your client, who were you working for? A I was working for Mr. Dick at the beginning, and then as I Well, again, I was trying to resolve the matter as got involved with the buyer, then Mr. Herman became a client as well. Q Was the work for the buyer contingent upon the work for Mr. Dick being completed? A Well, I obviously believed that. It wasn't in writing or anything else, I mean, ~[oing something for someone who didn't own any property would not be too beneficial to anyone. Q Was Mr. Dick ever submitted any invoices or bills for the work that you did? A Yes. Q Were those invoices paid? A No. Q In the course of trying to contact Mr. Dick about this project, did you ever speak to his son, Richard, who I believe had the power of attorney at the time? A I spoke with Richard I believe on two occasions. I spoke with him once at the property that we just discussed a few moments ago, and then I beliew~ I called him one other time. Q Can you tell us about that conversation? A 66 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 to where the property line was. is he had nothing to do with it, subdivision, his father's process, with him. Q So you were of the about this would be made by Mr. property lines go? A Yes. MR. ROBINSON: Those are all the THE COURT: I am going to take a you may step down. We will reconvene at ten of. (Recess.) THE COURT: Cross-examination. The indication I got from him that this was his father's and that I needed to speak impression that all decisions Paul Dick as far as the questions I have. ten minute break, BY MR. Q marked as CROSS-EXAMINATION MILLER: Mr. Neidlinger, in looking at the plan that we have Defendant's Exhibit 1, you have the fence line marked along here. Looking at the plan, it looks like the fence line ends right there. Did it end there or does it continue up and we just didn't worry about adding in additional fence? A I believe it ends there, but I am not -- that new fence or a relatively new fence and I don't honestly totally know; I would have is a but I would have thought if it went on somewhere shown it. 67 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Do you recall in your conversations, I guess it would be with Richard Dick, Paul Dick's son, him saying that he wanted the line below that fence? A No, the only issues that came up on that day with Richard, and more directly the second individual that was with him, is an interest in the stream on the far east end of that section B or that parcel B. Q What do you recall the conversation concerning the stream to be about? A If they had cattle there, they wanted access to water, which is a stream that may be, I am not even sure, I don't believe the actual water portion of the stream is on the Dick property, but that is what they were referring to is for access for animals. Q It looks like you kind of have it outside of the lines, but it is along that eastern -- That is correct. -- eastern border anyway? A Again, I will state, this section of the property is in low lands and marsh lands and defining fence row or defining tree line on that portion,, the northern portion, is very, very difficult. Q Do you recall having any conversations with Mr. Herman about the tree line and the fence line and where that lower line was supposed to be? 68 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A at least be in the tree line so that he had a visual buffer that he controlled. That was his wishes or -- in discussion. Q Do you recall when that discussion took place? A Well, that discussion took place the day that we were riding around in my pickup truck and we met with Mr. -- we saw Mr. Dick in the farmhouse area. Q Your conversation, initial conversation with Mr. Kafkalas didn't involve any conversation as to what Mr. Herman!s A Mr. Herman's interests were that the property line desire was though, did it? Absolutely not. He wasn't or -- the only issue was, and the house and barn is defining the ten plus or minus acres, were to be retained by Mr. Dick. Q Did he tell you at that point that it was Mr. Dick's desire to retain the upper portion of that property, all the way to the stream, and that they thought that was plus or minus ten acres? A No, there was no definition given to me other than plus or minus ten acres, house and barn. Q the lower line, line, now? So that is all you had to operate on? That is correct. Is there any particular reason why you have the and the side line for A where they are A Yes. 69 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q What are those reasons? A The reason -- the line to the east, which is the -- on that little sketch, between A and B, that is there to show that it included the barn, just beyond the barn a little ways. The one to the south, which is in the tree line there, it was put there to show that there would be adequate border to the east on the house, and then the fin. al answer was is what is ten acres, and that is how they arrived there. So if this line -- A Let me further say that if you move the borderline between -- on the south of that tract, between A and E over to the fence line, then the one on the east side would have to come in to make ten acres, and then the barn would not be included on that tract. Q That was going to be my question actually to you. So to keep that ten acres and include the buildings, that line cannot -- or the eastern line is really what is controlling where the southern line is on this sketch plan? A it, yes. Q over to I property? A When you include the barn and a little area around My next question is: Why did you extend the line guess you would call that a corner point on the Well, the issue was ten acres plus or minus, okay, and in order to have a logical discussion, and it really was a 70 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 logical discussion with Mr. Dick, was you got to put some definition to it somehow to figure out what to do. So I said, hey, if you go all the way to that point back there, given the line I already had on the southern side of A, then you extend that line somewhat to a normal poin. t of change of ownership, I just ran it to that point, and that made the 7 acres. So I wasn't trying to pre-determine anything, I was only trying to give enough parameters so that a meeting would hopefully be fruitful and everybody had all the information that I could provide. I put the fence on there also because it is a feature that exists out there. Q My follow up then, Mr. Herman wasn't requesting that a separate lot be carved out for B? A Absolutely not, no. Q That was something that you had done to represent how much acreage was located in that section? A That is correct. Q If this line was moved south, and I guess when I say this line, I mean all the way from the western boundary over to the eastern corner, if that whole line was moved down to include the fence as part of the property that would be retained by the seller, do you haw~ any estimate as to how much acreage that would include? A No, but it would be between 17 and 20 acres. A and B is 17 roughly, we didn't totally firm up what B was, but it 71 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 is roughly 7 acres. Q It says plus or minus. A Yes, and, of course, this isn't a finished product, again. So if you move it down you are going to include some more acreage. So I would say no more than probably about two more acres. I am not sure, I didn't do enough work to know if the fence line extended actually goes to that point on the eastern part of B that you are referring to there. Q I guess, just to summarize your testimony, that would -- upwards or close to 20 acres would be included if that whole -- A Q A Q sale? A That would seem reasonable -- -- line was moved down? -- my estimate. Double what was on the front of the agreement of Again, how much acreage is is not your typical I caution anybody to go out there and say in that little parcel of ground because it five acre parcel or two acre tract of homeland. the boundaries are. Q I believe you testified that it was almost impossible for anyone, even someone that real estate, A It is very dlfficult to see and observe even where difficult or is involved in to accurately estimate how much acreage is there? Yeah, absolutely. I don't think I would want to 72 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q compared to A Q take a bet on it, you know, because my answer would be I What would make another case? Repeat that please. my estimate, of what was there, will survey it and let you know. that difficult in this case as What would make the estimate as to how much acreage would be in that northern section more difficult in this case as compared to another case? A Well, the lines are not well defined to start with, existing property lines are not well defined; the terrain is extremely up and down hill; and it is treed, to say it is a wooded -- there is a lot of young growth tree stuff all over the whole place, so it is not clear. So the topography itself would also make the trees, the wetlands? Yes, all of that. Q difficult, A Q perk and a probe. you recall -- A That is Q I guess, it I believe you also testified that you had done a How many perks and probes did you do and do incorrect, sir.. correct me and tell me what you did do as far as -- A I informed I believe it was -- I am sure it was Pete, that part of the process of getting a subdivision plan involves a township requirement to show that the parcel you are 73 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 taking off has adequate sewage disposal capability, and you do that by getting a perk and a probe. Sometimes I said, because I had not gone to Lower Frankford Township and spoke with them myself directly, they require an additional perk and probe for a backup site for the house and barn area that is being -- lands being removed from it. I said, In order to do that, we need to get on with that process. Q You are talking now about the northern portion that the existing house and barn might r~eed a separate perk and probe? A Q had with Mr. That is correct. I guess I am referring to what conversations you Herman about what needed to be perked and probed or what he conveyed to you? A I spoke with Mr. Herman and said, Hey, Mr. Dick has to get a perk and probe on this land that he is selling to you. I always advise everybody I am trying to do business with -- is to say, hey, it isn't going to matter to Mr. Dick where he gets the perk or probe, as long as it is on the property that meets the township requirement. So, I said, Why don't we establish where you may want to build a house and then look for a logical site from there to get your perk and probe, to get a perk and probe from Mr. Dick, but then, when it was all done, it would be usable for Mr. Herman's intentions. 74 1 2 4 5 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So many times a person selling a property or a developer goes out and perks and probes maybe the closest to where a backhoe can get, and it has no relevancy to how the property may be used down the road. Here we had -- I had the option of having both parties there and was trying to make the most of somebody's money and we will get it and it will be done and it will be usable. So that was my discussion. Q As a result of that discussion, did you make any notations on the plan or let him ku~ow a location where the perk and probe could be done? A There is a notation of square on there I -- and I think that is really -- Q Is that this dotted -- A Yes, sir. But I think that is the location of a potential house. I believe to the north of that, north, yes, north of that area, towards that parcel B is where we had proposed potentially to do a perk and probe. Q Did you have any other conversations with Mr. Herman about other subdivisions that would require a perk and probe and that he wanted to sell off acreage for other houses or anything? A I believe we discussed the potential of subdividing, you know, what else could he do with his property. Being that he was putting his house in the far eastern portion, there is a lot of road frontage out there, I believe, I 75 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 suggested to him, until he was more firm in what he wanted to do, not to complicate this thing any more at this point in time, because in that part of the country getting perks and probes is not simple. You might spend a lot of time out there, because there is very little top soil, very poor soil for sewage disposal. Q I guess then dropping to the next issue, which is the mobile home, it is your recollection that Mr. Herman is the one who approached you about subdividing a portion of the property surrounding the mobile home? A Yes, there is no question about that. Q Did you have any conversations with him about additional work that would need to be done, perk and probe, or other things that might need to be done as far as that goes? A Oh, yes. With Mr. Herman? Q Yes. A Yes, absolutely. Therefore, I sort of entered in an agreement with him verbally to do work for him that would be submitted as part of the same plan that was going in for Mr. Dick. Q You never had any conw~rsations with either Mr. Dick or his son or with Pete Kafkalas regarding Mr. Dick's possible desire to keep that mobile home or to subdivide off property for that? A Absolutely not. 76 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q agreement of sale A Q Okay. Do you recall if you were sent from Mr. Kafkalas? Absolutely not. Have you ever seen that or were you just a copy of the basically -- A Absolutely not. Q So you were just going off what your conversation with him was at the time? A That is correct. MR. MILLER: No further questions. THE COURT: Any redirect? MR. ROBINSON: Just a few. REDIRECT EXAMINATION BY MR. ROBINSON: Q You had mentioned that some of the work that you did do on the sketch plan here was done for Mr. Herman. Did you ever present an invoice to Mr. Herman for the work that you did? A No. Q Do you have an estimate of what the value of that work would be, in other words -- A Let me correct my statement. I did not present one until today. Q What is the amount of that invoice? 77 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A waiting guess I Herman. Q Mr. Work to date, not including interest on 2 years of for money -- but I didn't present an invoice, so I am not concerned about that -- it is $2700 to Mr. 27 to Mr. Herman, okay. You did mention, and I just wanted to confirm that Herman did speak to you about the possibilities of subdividing the property down the road, true? A He had talked about an interest in doing that, except that I think I was successful in talking him out of doing anything at this time because I felt that got too complicated for what we were trying to do right now. Q In testimony I heard that someone had expressed an interest in at least part of what is listed as parcel B so that they had access to the stream. It was further brought out that that had to do with cattle, I believe water and cattle. Were there any cattle on the property? A Not that I saw, no. I checked with -- I talked to some of the people I had out there and they said they were not aware of any cattle out there either. MR. ROBINSON: That is all I have. excused. THE COURT: MR. MILLER: THE COURT: Any recross? No, Your Honor. Sir, you may step down and you are Any further witnesses? 78 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 MR. ROBINSON: Your Honor, I would like to recall Glenn Herman for just a few questions, if I may. THE COURT: I will allow you to do that. GLENN HERMAN, having been duly sworn, recalled as a witness, testified as follows: DIRECT EXAMINATION BY MR. ROBINSON: Q Mr. Herman, what were your intentions, what were you planning on doing with the property after it had been subdivided to 70 acres and sold to you? A To build a house for retirement, which I am basically in now. To also subdivide off the piece of property with the mobile home so that it was legal, because at the time I didn't -- it had not been subdivided, I didn't know whether or not the township recognized it for tax purposes, and I wanted it to be legal on that if it had not been. Also, I was planning on putting two other houses ou the property prior to my retirement house in order to afford extra income for the building of my actual residence. Q So you were planning on further subdividing the mobile home for one or two other lots, is that true? A Correct. 79 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 On those lots you were going to build homes and Q sell them for additional income? A Yes. Q Did you have any estimate or did you have any idea of what you would build the houses for and then sell the houses for? A I had checked on the Internet a few places for what they call pre-fab homes, which were actually built in a factory and then sent down and put up within just a couple of days, actually. If I could, I would have also put full basements in. if I could, towards the being out of my view per se I wanted enough acreage for Each property would be, corners of the property, therefore, of my house, being two acres each. houses of approximately 3,000 square foot. Q So those would be 3,000 square foot per house? A Per house. Q Pre-fab? A Correct. Q What would you intend or had you researched what would be the re-sale price for those two acre lots with the 3,000 square feet homes would be? A Going back 2 years, looking in the real estate magazines that were back then, something like I was looking at would have brought approximately $180 some odd thousand dollars each. The houses themselves at the time for a pre-fab house 80 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 similar to what I wanted would be somewhere around $86,000 for the house itself, not counting a full basement, if they had it, and not counting the actual cost of the two acres. The two acres at the contract price would be a cost Q of? A Q A Q The contract price for the sale of the houses? Right. I was estimating that at $185,000 per house. Then the profit which you intended on this would have been roughly? A The profit would have been approximately 90 some odd thousand per house or per unit and that was at that time. MR. ROBINSON: That is all I have, Your Honor. THE COURT: Cross. BY MR. MILLER: Q Mr. CROSS-EXAMINATION Herman, I am not sure if you testified before earlier A Q A Q A Q as to this or not, but where do you currently reside? New Jersey. I did testify at the very beginning. How long have you lived in New Jersey? 55 years, it will be 56 in August. Do you own any property in this area? No. I am hoping to. What research or what magazines would you have been 81 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 looking at in New Jersey that would tell you what houses and land and things would be worth here? A I didn't say I was looking in the State of New Jersey. I said I was looking at real estate magazines, which are obtainable in any portion of Pennsylvania. You go into any store and usually there is a rack with magazines. Also, there are magazines located in any real estate office. Q Did you contact any local builders or providers or where did you think these homes that manufactured homes, were going to come from? A every state. state trailers, sections. Q On the Internet, the homes are built in almost There is one at least that is located in the of Pennsylvania. They ship the homes on flatbed it is not an issue. They are in sections, flat Had you contacted anyone at the township concerning what their subdivision requirements would be, what other requirements they would have if you wanted to subdivide or build additional houses on the property? A The only thing I did was there was a neighbor across the street that I had discussed the purchase of the property with because he had seen me looking at it. At that time I had a discussion with him about building houses and he said he believed that in the township you needed a minimum of two acres for a house, and that is how I came to the conclusion 82 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 of giving two acres for each house. Q Had you taken any additional steps to see whether the property that you were looking to subdivide was perked and probed in those areas or whether two acres would be sufficient? A Due to the acts of Mr. Dick and the failure to complete the contract, I felt no need to at that particular time, that it would be just extra money. Q So if I can summarize, your estimates on what you testified your profit would be, and I guess I use profit in quotes, you looked at some real estate magazines off the rack of a store, is that correct? THE COURT: You don't have to summarize, his testimony is in. Ask direct questions. MR. MILLER: No further questions, Your Honor. THE COURT: Any redirect? MR. ROBINSON: No, Your Honor. THE COURT: Sir, you may step down. MR. ROBINSON: Your Honor, I would like to move that the Plaintiff's Exhibits be a¢imitted. THE COURT: Any objection? MR. MILLER: No, Your Honor. THE COURT: They are all admitted. MR. ROBINSON: And the Plaintiff rests. THE COURT: Defense? MR. MILLER: Your Honor, we call Mr. Paul Dick to 83 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the stand. PAUL E. DICK, having been duly sworn, testified as DIRECT EXAMINATION BY MR. MILLER: Q Mr. Dick, can you state record? A follows: your full name for the Say what? Can you state your full name for the record? Paul E. Dick. Where do you currently reside? Say what? Where do you live? 1100 Enola Road, Carlisle, PA. How long have you lived there? How? How long have you lived there? 82 years. About 82 years? I think so. How old are you, if I may ask? I think I will be 85 the 10th of August. 85 on the 10th of August? I think so. Are you not sure what your age is? 84 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A What? Q Are you not sure what A What? Q Let me ask it a different way. of birth? A My name? Q Your date of birth, when were A 10th of August 1918. Q 19187 A Yes. your age is? What is your date you born? Q Do you remember meeting with Peter Kafkalas, the realtor at Jack Gaughen? A I just about half remember the face, that is all. Q Not me, but do you remember the gentleman who testified earlier, Mr. Kafkalas, I don't think he is here now? A I sort of remember him. Q Do you remember talking with him about selling the property that is depicted on that chart? A I remember talking to him, yes. Q What did you talk to him about, what did you want to do at the time? A What? Q What did.you want to do at the time with regard to the property? A With what? 85 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q him you wanted to do as a portion? A Q When you talked to the realtor, what did you tell far as selling the property and keeping I don't understand it. Let me ask it a different way. sell the property that you owned? A Well, not really. The property that is a'z 671 own that property? Did you want to Old Mill Road, do you I think so. Approximately how many acres is it? About 82 or 4 acres. 82 or 84 acres? 82 acres, 84, something like that. Did you go to Jack Gaughen and ask them or tell A them that you wanted to sell a portion of that property? it, yes. A I went down and talked to him about What did they tell you'? What do you mean? Did they give you a contract to sign? Yes, I signed a contract. What was that contract for? Well, to list it, I guess. To list the property for sale? Part of it. 86 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 2O 21 22 23 24 25 Q Do you remember walking around the property with your realtor? A I didn't walk around the property with him at all. Q Do you remember telling him that you wanted to keep a portion of the property, that you didn't want to sell the whole thing? A Yes, I told him I wanted to keep part of it. Q What part did you tell him you wanted to keep? A Well, I hadn't quite made up my mind yet. Q Had you pointed out the fence to him? A What? Q Did you point out the fence to your realtor and tell him you wanted to keep that? A I don't know how to answer that, really. Q Do you not remember? A Do I what? Q fence? Do you not remember telling him anything about the A sell the property for? A What? Q How much money did you want for? A It wasn't pointed out that much, all. How much did you tell !four realtor you wanted to to sell the property 250,000, and he took care of all the expenses. 87 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q 250 and he what? He is to pay everything. And he gets paid out of that? Huh? He gets paid out of that? I get 250,000, and he ]pays all the expenses. So it was your understanding that you were going to receive 250,000 when the property was A Q sold? Say what? It was your understanding that you were going to get paid 250,000? A You are asking me a lot of questions, and I don't quite understand you. I wouldn't be in this mess if I had got some schooling. Never got going to modern -- THE COURT: Hold on. Try another question. A I never got more than two-thirds grade school, diploma? diploma? I didn't get more than never got much school. THE COURT: Next question. BY MR. MILLER: Q Do you have a high school A Say what? Q Do you have a high school A I just got done telling you, two grades through grade school. Q Who is your attorney? 88 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Roger Irwin and Mr. Miller. Roger Irwin is your attorney? Roger and Mr. Miller. You need to speak louder into the microphone so the stenographer can hear you. A Say what? THE COURT: He said Roger Irwin. Next question. BY MR. MILLER: Q Did you have Roger Irwin look over the contract that had been prepared? THE COURT: What contract? The listing? MR. MILLER: Either one. THE COURT: Show him both. BY MR. MILLER: Q Do you recognize this marked as Defendant's Exhibit 2 called a listing contract? A Say what? Q Do you remember seeing that? A I can't read that fine print. Q Do you remember signing a contract to hire Mr. Kafkalas as your realtor? A I just don't understand the whole thing. Q Let me ask you this question. Do you recognize this document marked as Plaintiff's Exhibit 1 called the agreement for sale of vacant land? 89 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A I signed something but... Do you remember signing these documents? I guess so, I don't know. Do you remember talking with your realtor about what was in these documents? A Who? Q Your realtor? A No. Q You don't remember -- A (Witness shakes head negatively.) Q Do you remember telling him anything about the mobile home that was A Q microphone. A Q A Q contract to you? A No. Q A Q page? on the property? I told him I was keeping that. You need to speak louder. Can you speak into the I told him I was keeping the mobile home. What did he say when you told him that? I don't know, he mustn't have answered. Did he read over the terms that were in the No, or you don't remember? I just don't remember. Are those your initials there at the bottom of that 90 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A That is my initials. Q At the bottom of page 2, did you initial that? sale. are those A Let me see the other one. Q Let me jump back to page Did you initial that page? your initials, A I just don't quite... 5 of the agreement of That don't look like my initials. What do your initials look like? THE COURT: You are going to have to try another question other than that. MR. MILLER: Ail right. BY MR. MILLER: Q The signature that is ,on page 6 of the contract, that your signature, about three quarters of the way down? THE COURT: Ask him again. BY MR. MILLER: Q Do you understand my question? This line right is that your signature? I don't know. It don't exactly look like it. Let me ask you, back on Defendant's Exhibit No. here, A Q the listing agreement, is that your signature on that line about three-quarters of the way down, right here? A Not sure about that, i-z doesn't look like mine. Q Do you remember taking this document to Mr. Irwin and asking him anything about it? 91 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 contract? THE COURT: You are referring to the listing MR. MILLER: No, the agreement of sale. THE COURT: The agreement of sale. Make your questions very short and very simple. Try another question and point out what document to him and tell me what document you are talking about. BY MR. MILLER: Q This the agreement of sale, did you sign this at Jack Gaughen's offices? A Q A is his signature. BY MR. MILLER: Q A Q Exhibit 1. A Q A Q document marked as Plaintiff's Exhibit 1 as Where is the signature? The signature is on the last page. I can't see that. THE COURT: He already told you he doesn't know it Next question. Have you seen this plan before? Say what? This plan before that is marked as Defendant's How is that? Have you seen this I can't hardly see Let me bring sketch plan before? it. it closer for you. Have you seen this 92 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 plan before? A Q A Q question. plan. I don't think so. Is this the property at 671 Old Mill Road? Yes. How do you know that is that property? THE COURT: Wait a minute, that is a two-part He doesn't even know whether he has even seen the Do you know what that is? A Say what? looking at? A you tell? A THE COURT: Do you know what that is, what you are It looks like a survey of some kind. THE COURT: Do you know what it is a survey of, The property on Old Mill Road. THE COURT: Okay. Next question. BY MR. MILLER: Q Where on Old Mill that is used there? A The barn and the house,, the barn and the house. Road is the barn and the house can you drive back the lane to lives Who lives at the barn and the My son lives there. There is Q house? A another partner who in part of the house at the time then. Q What is that property used for? 93 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A A the farm. Q A Q What do you mean, the property? Is it farmed? Yes, make hay there, my son makes the hay there on What else, is there livestock? Livestock, yes. What kind of livestock'? A Usually steers. He kept around 50, 60 out there still. I think he only got a few now. Q But there are some there now? Yes. You need to say yes or no, not just nod your head. Any place where those trees are, like, you know, Are there steers there now? A Yes, now. Q When you talked to your realtor about selling this property, did you want to sell the whole thing or -- A No. Q -- did you want to keep part of it? A I was keeping part of it. Q What part did you want to keep? A Well, the house and the barn and all the woods and the field up on the hill, that is all we have on it. Q When you say all the woods, what woods are you talking about? A 94 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the woods there. There is trees on both sides of the farm. The stream. Q A Q A Q stream? A Q A Q A fence up, Q A Q property? A Q A There is what? The stream too. You wanted to keep the stream as well? Yes. Was there a reason why you wanted to keep the On account of the livestock. Is that what the livestock used to water -- Yes. Do you know about the fence on the property? Well, not exactly. I know that my son put a new up the edge of the field. When did he put that fence up, 3, 4 years Is there a do you know? ago, I don't know for sure. fence that goes all the way around the No, not all. Where does the The fence goes fence go? around up along the field. Some of it don't have no Q A around. fence at all around. What portion doesn't have a fence? Where he doesn't pasture don't have no fence 95 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Where would the pasture be, in the eastern part -- It would be on the south side. Did you talk to your realtor about the mobile home Q on the property? A Well, not that much. I told him I was keeping that and 50 feet from the road that goes back to where that mobile home sits there. Q So the mobile home is about 50 feet from the edge of the property? A Yes, I wanted that, away from the mobile home. Q Who lives in the mobile home? A I forget her name, some lady. Someone lives there now though? Yes. Is she paying you rent'? She pays my son. Why does she pay your son? Well, he is part of me, you know, he lives up there and takes care of things. Q Is his power of attorney for you? He is power of attorney. How long has he been power of attorney for you? I don't think it is quite a year yet, probably is, don't know, about a year. Q How long has he been helping you out with 96 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 collecting the rent? those? A Well, even before power of attorney. What kind of things does he help you with? Well, whatever he can .do. What about when you get bills, what happens to A He usually takes care uf the bills pretty much. Do you have your driver's license? Well, if you want the 'whole story, I lost them through my neighbor. Q I don't think we want the whole story. your driver's license, yes or no? drive? A Do you have I don't have them now. Was your driver's license taken away from you? North Middleton Police, the Carlisle police. Did your doctor tell t[he police that you couldn't A A Q Your doctor, shouldn't be driving? Tom (inaudible), he was the instigator of it. But did your doctor -- Who? did your doctor tell you, you A I don't remember my doctor's telling me anything about driving. THE COURT: He doesn't remember, move on. 97 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A I was months yet -- BY MR. MILLER: Q A Q A Q A Q A Q A now. questions, supposed to get them back and he -- about 3 Have you sold any other property recently? Say what? Have you sold any other property recently? Have I done what? Have you sold any property? Recently? Recently. No. Within 2 years? I wouldn't know who to. I just can't think of it MR. MILLER: THE COURT: right here. No further questions, Your Honor. This man is going to ask you some BY MR. ROBINSON: Q Mr. Dick, CROSS-EXAMINATION have you been in the hospital for anything in the last 2 years? A I have been in the hospital. Have you? Do you want to know why I was in the hospital? 98 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q You were in the hospital? Say what? You have been in the hospital in the Yes. -- last two years? Yes, okay. What type of ailments .did you have, what were you in the hospital for? A Well, I got six cats up there on the farm and I -- when Dick was out driving truck I ]nad to go up every day and feed the cats, you know, give them milk and feed them. And there was two gray ones and two -- well, one color and two yellow ones. around after And this little yellow one was always running the dog. And one day -- the kittens would run into the house, but I could pick it down, you know, it never bothered me. So I let it in the house, in the kitchen, and I went in after it and it run over in the room. It jumped up in the thing there, the chair or whatever, and I picked it up and it just cut my finger open. A couple days later my finger swelled up and the rest of my fingers swelled, I couldn't hardly bend them and they got stiff, you know, swollen all up. THE COURT: Were you in the hospital for anything else in the last couple years, any other problems? A No other problems I guess. THE COURT: Next question. BY MR. ROBINSON: 99 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q any medicine? A Since the police locked me up and stuff, they locked me up, and the blood came out of two places. THE COURT: The question is, are you taking any medicine now that you know of? A day. BY MR. Are you on any medicine right now, are you taking I am still taking about eight kinds of medicines a ROBINSON: Q Do you know what they are for? A I don't know, two for rabies and getting all boogered up. Q How long ago was it that you turned back in or how long ago did you lose your driver's license? A A against me, November I believe. November of just last year? Last year. Harrisburg, they don't have nothing I got a clear record, and never no problems before, I I never hurt nobody driving or anyEhing, never one person. know I drove around the world three times. MR. ROBINSON: THE COURT: MR. MILLER: THE COURT: Those are all the questions I have, Any other guestions? No, Your Honor. Sir, watch your step, and you can go Your Honor. 100 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 back. Next witness. MR. MILLER: I call Mr. Richard Dick to the stand. RICHARD L. DICK, having been duly sworn, testified as follows: DIRECT EXAMINATION BY MR. MILLER: Q Can you state your full name for the record. A Richard L. Dick, 671 Old Mill Road, Newville. Q The property that is referenced by Defendant's Exhibit 1, do you recognize that property? now? A Yes, I do, that is where I live. That is the 671 Old Mill Road property? Right. How long have you lived there? Approximately 10 years. What is your current occupation? Farmer. How long have you been farming that property? Probably 20 years. What kind of farming is done on the property right A Just a crop farm, hay farm, mostly hay. Are there any livestock on the property? Yes, there is. 101 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q What kind? Beef cattle. Do you know how many? Two right now. In June of 2001 how many livestock did you have? I am not sure of the exact date when I sold. I had 110 there, because I would buy and sell, I would move them in and out pretty frequent. Q So you had quite a few more there at the time, is that fair to say? A Yes. Q How do you care for the livestock? A Well, I pastured mostly and feed them chop. Q How do you water them? A Through the winter, mostly from the house well; but through the summer months they can get water down in the lower pasture. Q Is the stream that is referenced on the eastern, along the eastern boundary of the property, is that the stream they use? A Yes, it is, it cuts through the east corner of the property. Q What is the topography like on that property? A Well, near B, probably three quarters of that is sort of wetland, I use that for pasture. The remaining part of 102 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A A there. Q A myself. Q A will last Q A days. it is woodlands. Q You have seen the fence that is marked on the blowup over on the right-hand side,, correct? Yes. Who put that fence there? I built that fence about a year after I moved A my life. BY MR. How long ago would that be, about 9 years ago? That is 8 or 9 years ago, I built that fence What kind of fence is it? That was mainly locust post and American wire, the rest of my lifetime. Why did you build the fence there? Because I plan on running cattle the rest of my that THE COURT: I am sorry,, what did you say? I plan on running cattle in there for the rest of MILLER: Q The fence as noted on the sketch plan seems to end at the point somewhere below lot B. Does the fence actually extend beyond that? A Yes, it doesn't go straight on back like the western end of it there. There is where the woods start, right 103 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 there where that B is at. I didn't take the fence straight back through because it is woodland, there is nothing to eat in the woods, so I ran the fence on the outer parameter of the woods in the field where they meet. Q Can you come and point that out for the Court as to what you are talking about? A The fence right here. Q Speak up so the stenographer can hear you. You are pointing at the right most corner point that is noted on the sketch plan? A Right, then here it will go north. Q Into what is marked as lot B? A Right, to the edge of the woods, and this is pasture lands in here. Q You are talking about ~he area, the northern part of what is marked as B? A Correct, and the wire fence follows the tree line around here and then back up across here and around, back up to the barn. Q So does the fence fully enclose that area that you are talking about on B? A Yes, that area is completely enclosed. This fence goes down along the driveway and south and then where the field sort of leveled off, it is real steep there, that is why I decided to run my line fence straight back across pretty much 104 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 perfectly straight. That is a real pasture in here. This area in here, here where I make the hay off of. good fence. This is all there is a couple spots in Q You are talking about -the northern part of A is where you do the hay? A Right, this here is all pasture in there. Q Were you using the area that you pointed out that is in lot B as grazing land, pasture land at the time? A At the time I met Mr. ]Herman in my driveway, I might not have had cattle at that moment but I was also using that for pasture. How long do you typically keep livestock on your Q property? A Well, usually I will months to get them up to weight, will move them out. rotating them. feed them out for 6 to 8 slaughter weight, and then I I usually try to have enough to keep How long have you been keeping that operation going? A moving cattle around. I would say probably 5 years since I have been I truck some out to Iowa, some down to Kentucky, time. Q property at so my population out there goes up and down all the Do you remember talking with your dad about selling 671 Old Mill Road? 105 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A Yes. When was that approximately? Probably 3 years ago,, 2 and a half years ago. We are both getting old, and I wanted to take care of all the bills so we wouldn't have to work so hard the rest of our life, you know, just sort of do what we like to do, instead of having to work just to survive. Q What portion of the property did you want to sell? A Everything north of the fence there in a straight line clear back to wherever it met the east side. Q Was that so that you could retain what you were currently using the property for? A That is all it would be good for is to graze cattle in there and what have you. Q You weren't planning to scale back on what you were currently using the property for though? A No, I rent a lot of properties too. I have plenty of property to make my hay off of besides my dad's farm that is pretty big. Q What was the main part of the property that is marked as E on that sketch plan, what was that used for at the time? A I crop farm that. Q Crop farm, is that what you said? A Which section did you say, C or E? 106 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q was signed? A bills bills, ago. Sorry, E, the main portion here. Yes, that there is all in hay, crop farmed. Did you ever meet with Mr. Kafkalas, the realtor? I can't remember ever meeting him, no. Did you ever see the agreement of sale before it NO. Q How long have you been helping your dad out with and things like that? A I have helped my dad for years taking care of but I just became power of attorney in April, a year Does your father have come in the mail? Q and things that trouble understanding bills A and stuff like that, don't understand it. Q A Q have? A goes to? A Well, he pretty much understands your light bills but if it gets more complicated, he just Is there other property that he sold recently? Not within the last couple years, no. What sort of medical problems does your father Dementia, Alzheimer's. Does he have regular doctor's appointments that he Yes. 107 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q Is he being treated for those problems? Yes, that is part of the medication he takes. Do you know what the medication is, the exact name or what it is supposed to do? A No, I don't, I should ]nave brought that along I guess. He takes blood pressure medicine, diabetes, Alzheimer's and dementia. Q How long has he been on that medication? A I guess close to 2 years. Q Do you know was he on 'that medication at the time when you decided to sell the property? A I am not sure what he was on at that time. I was driving truck and I should have been home a little more, you know, and I wasn't. Q Were you home at the time that these contracts were being passed back and forth? A No, I was home one weekend I believe it was, and that is when I met Mr. Herman and a couple other fellows there in my driveway, I only ever talked to them one time. Q with them at that time? A Well, they know, divided off, what Was the surveyor there at that point also? I think he was. Do you remember any specific conversations you had just wanted to know what I wanted, you I had in mind, what my dad had in mind. 108 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I told them I wanted to keep everything from the fence I put down because that was a permanent structure, my fence back there. Q up So you never told them that you were going to move the fence or were willing to move the fence? A No, I ain't going to move that fence. take a bulldozer to push that fence out. It would Q Does your dad have a driver's license? A No, he doesn't. Q Why is that? A From what I understand, they were taken for this dementia stuff through the doctor, that was taken while I was still on the Q A road driving truck. Do you know approximately when that happened? I am not sure when they suspended him, but they pulled him over in town and took them from him somewhere around Christmas 2 years ago. Q Was he hospitalised as a result of that? A Well, he has been in and out of the hospital different times. Q For what reasons has he been in and out of the hospital? A Well, he had a sore foot that he banged up on the four-wheeler. He had cat scratch fever, whatever you call it, from a cat. He had a ruptured appendix and complained about 109 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 He lives Q A him. Q his belly hurting him a good bit. I used to have some (inaudible) bulls up there and he got in the barn yard and one of them trampled him and he ended up in the hospital over that. Q Has that all been over the last couple years? A Yes, the last 3, 4, years, something like that. THE COURT: Did I understand he lives in Carlisle, he doesn't live with you? A He doesn't live with me. We have two farms, his address is in Carlisle. THE COURT: Got you. Next question. BY MR. MILLER: Q As a follow-up to that, does he live in a farmhouse or what does he live in? A No, my home farm where dad lives was burnt down. It was proved arson, but it was never found out who done it. 8 miles from me along the same road, 944. What kind of building does he live in? Mobile home, so I can :stay there to keep an eye on Did you have any conversations with your dad about the mobile home that is on this property? A Yes, we talk about thai2 every day. to sell that corner up because that is a steady income. It wouldn't make sense to sell that lot off for a couple thousand He never wanted 110 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 when we can sell the lot itself for 30 or 40. there a lease agreement with the person who is Q Is staying there? A No. Q A Q A Q A It is just a verbal agreement? Right. What is the monthly rent that they would be paying? $250. How long have they been living there? I would say probably close to 10 years. They went through the township to get in up there. We are allowed one mobile home on the farm without being subdivided off. Q Did you have any conversations with your dad about if the property was being sold what would happen to that mobile home? A intentions Well, it was going to stay there, because we had no of selling that lot off the corner there. That is a valuable piece of land right there on that corner. not? Q A Did he tell you he had no intention of Oh, yeah. selling it? Do you know if that was conveyed to his realtor or agreement of I couldn't say, because I wasn't there. Do you remember the first time you saw the sale that has been marked as Plaintiff's Exhibit 111 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 No. 17 A I am not sure. I think that was probably in at your office a good while afterwards. Q So you didn't see it before it was signed by anyone? A No, no. My dad and I talked over what we wanted to sell it for, that was 250,000, what we agreed on to sell. I don't know how they broke it down -- they came up with a price per acre. We never put a price on per acre. I told him we wanted to sell a certain tract of land for $250,000, and that we expected to get, and they stood all the expense to is what do it. Q subdivided? A Q A Were you aware that the property would have to be Was I aware that it wouid have to be subdivided? Were you aware that it would have to be subdivided? Oh, yeah, to subdivide the farmhouse off it, yes, and the mobile home. Q Had you discussed how those apportioned or who is A Q that to the realtor or -- A I am sure he would haw~, properties over the years, costs were going to be going to be responsible? Yes, the buyer would absorb all the costs. Again, do you know if your dad had communicated because we have sold other and it has always been that way, the 112 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 buyer would take care of the expense, the transfer, the title search, whatever you wanted to do. If the buyer wanted to buy it, you stand the expense to own it. Q How many properties would you say have been sold that way over the years? A My father had a lot of properties up on that mountain. I would say at last a half dozen I know of. Q Was it your assumption that this was going to be handled the same way? A Yes. Q Had he used a realtor before when he had sold those properties? A No, a lot of properties he sold himself. Q Who would prepare the documentation for that? A Well, we never bought anything this large. Most of the smaller properties we had were through a tax sale or something like that, it wasn't so complicated in breaking it down like this here. None of the sales were as complicated as this, it would be a tract of mountain ground or whatever that would be sold for a certain price, and you pay the expense to have it transferred over and that would be the end of it. Or if you wanted to build a house on a property, that was up to you, if you wanted to do the perking to build on it, we weren't going to stand the expense. 113 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q other paperwork to transfer the property? A Mr. Irwin has handled my dad's affairs for years. Q Do you know on the agreements, both the listing agreement and the agreement of sale, do you know what your dad's signature looks like and if those look to be your dad's signature? A with his initials, it tell. Who would handle drafting the agreement of sale and I notice that some of these here didn't look like but when you print, I guess it is hard to look like sale and page Six, that is my dad's signature. MR. MILLER: THE COURT: they are his, I guess 3 on the listing Q But the signatures page 6 on the agreement of agreement? A No further questions at this time. Cross examJ_ne. BY MR. ROBINSON: Q Mr. Dick, CROSS-EXAMINATION how long ago was it that your father was diagnosed with Alzheimer's roughly? A I don't think I was around, I was driving the truck, I was on the road all the time mostly. And he was in and out of the hospital, and I really didn't know what his illnesses were until I had to start dealing with it. I didn't 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 know he was that bad. didn't see hard to... diagnosed, I was on the road all the time, and I it coming in that fast. I know he has already been THE COURT: When do you think it was actually that is the question? When do you think the doctor finally said he got Alzheimer's? A I think he was seeing a doctor it had to be close after this thing or before this thing happened that he was seeing a docket at the Medical Arts Building. BY MR. ROBINSON: Do you know when that was, roughly? A I would say that it has been close to 2 years, I would think so. Q Mr. Neidlinger had testified that he had a conversation with you because he was unable to get a hold of he was trying to get information together for the your father, sketch plan? A Q A Yes. Do you recall that conversation by chance? I believe I remember him calling me on the phone once, and I met him one time in my driveway, I think, that was the only time I ever talked to him. Q Do you remember tellinq him that the decisions on the line would have to be your father's? A Well, I lived there and pretty much what I said, my 115 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 father went along with. It was my home, we were selling a part of it. I told Mr. Neidlinger, I am sure I did, standing there in my driveway, that I wanted the line to be on the south side of my fence so that the fence would always be on the property we were going to keep. I wouldn't want to sell a property with a line fence on their property that I put in myself. I wanted it to run straight to the east, no offsets, no jumping around. Q But do you recall explaining that to either Mr. Neidlinger or somebody involved in the subdivision project? A Well, Mr. Herman was there and the surveyor and I think his neighbor that lived across the street, I am not sure what his name is. Q Your father, home, not with you, A No. MR. Your Honor. you mentioned he lives in a mobile does somebody else live with him? ROBINSON: THE COURT: MR. MILLER: That is all the questions I have, Any redirect? Yes, Your Honor. REDIRECT EX]~MINATION BY MR. MILLER: Q When you had that conversation with Mr. Herman and the surveyor and Mr. Herman's friend, your neighbor, did Mr. 116 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Herman say anything to you as far as what your wishes were? A Well, he seemed to be a pretty decent guy, soft spoken, and, you know, pretty much agreed to where line to be because it is just right up from the -- house, you could pretty much see about where I wanted it, and he had no problem with that, he said, that is fine, I don't want any part of that woods anyhow. Q Did you think he understood that you wanted the line below the fence and that wouldn't be a problem? I wanted my south of the A I thought for sure he understood that, because I wanted to keep cattle in there, you know, and I don't want to have the problem with my line property. Q you seen the agreement of sale? A No. Q So you didn't fence being on somebody else's When you had that conw~rsation with Mr. Herman, had sale talked know the agreement of approximately ten acres? A No, that was just a guess. Even if about I had to guess, would have thought closer to twenty acres than ten because of along the hard road, you know, that takes up a and it wouldn't take long to use up ten acres, would have guessed it to be more than ten. Q was there any conversation the day that you all met it being limited to ten acres or anything like that? the two plots couple acres, but I about 117 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 A I wanted to keep and that was all right. that laid off there, the line goes right Nothing said about specific acres, it was just what The way they have in front of my barn doors, there is no pasture left,'that don't make no sense. Q You are saying the way that A is charted right now? A The way A and B is split there, the property line goes right in front of my barn doors and all the pasture is east of it, and that is B, which I never wanted to get rid of that, that is part of that lot there, the farmette. MR. MILLER: THE COURT: MR. ROBINSON: THE COURT: MR. MILLER: No further questions. Any recross? No, Your Honor. You may step down. Next witness. I call Roger Irwin to the stand. BY MR. ROGER B. having been duly sworn, testified as DIRECT EXAMINATION MILLER: Q A Q A Q A IRWIN, ESQUIRE, follows: State your full name? Roger B. Irwin. What is your current occupation? I am an attorney. And my boss? Your boss. 46 years. 118 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q discussions with Mr. Dick about the sale of the property at Old Mill Road? A There was a listing agreement dropped off at my office. Q So he hadn't talked to you about it before that What is the first recollection that you have of any 671 you had looked at the listing I did look at the listlng agreement. Do you recall making any mental notes or calling point? A Not that I recall. Q Do you remember if agreement? A Q looking at it? but I think that I did at least But I think that Mr. Kafkalas is Mr. Dick or anything after A I don't recall, talk to Mr. Dick about it. the one that came back and picked up the listing agreement from my office, I did not have a copy. And as he testified, I think lengthy time period that I had it, so I wasn't going to be completed or anything more than that and gave it back to Peter. Do you remember if it was signed at that point? I think it was not signed when I had a copy. Do you know if Paul had signed it at your office or Dick had signed it at your office? A No, he did not. there was some sure if it was I looked at it Q A Q Mr. 119 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q What was the next recollection of contact that you had regarding the sale of the property? A That I was told or informed that there was an agreement of sale signed and I think, as Mr. Neidlinger mentioned, he came in on another matter about that time and I mentioned to him that I thought there was some property that Paul Dick had possibly sold or part of a property and he would need a surveyor and I know he had another property that he had a survey problem with and I suggested to Larry that he contact Mr. Dick. I think some of the papers indicated that I had hired Larry but I had nothing to do with that hiring. Q Did you direct Mr. Neidlinger to contact the realtor or contact Mr. Dick? A I think I told him to contact Mr. Dick. Q Did Paul Dick bring the contract or the agreement to sell the property to you prior to him signing it? A No. Q So he had not asked you to review it at that time? A No. Q Do you recall Mr. Dick having any conversations with you about what portion he wanted to keep or how the property was to be subdivided? A I think that was the next step that somebody contacted me, I am not exactly sure how I was contacted but I was contacted to see if we could set up a meeting to determine 120 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the subdivision, how it was going to be done. At that time in talking to Mr. Dick I understood that he was to keep a portion, the barn and house and other ground. Do you want me to go on? Q Was that the meeting that this plan was presented? A Then we met, I met with Larry and the realtors at my office and this plan came out. The Dicks were not there, and I -- at that time I realized that there was a serious problem, because I understood that what would be on there marked A and B is what Paul Dick and Richard Dick wanted to retain, and it, obviously, was more than ten acres. I told them, as I recall, that what I would do, I would keep the sketch plan and I would meet with the Dicks to see if we could try to figure out some idea as to what -- where do we go from here. I told Larry I believe at that time he better not do anything else, because, obviously, there is serious confusion as to what is being sold and what is being retained. Q Was Mr. Herman present for that meeting? No, I never saw Mr. Herman until today. His realtor was there though for that? Yes. Do you recall any mention being made of what Mr. Herman wanted or where he thought the line should be? A No. Q Was there a subsequent meeting to that one, do you 121 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 remember? A I definitely had a meeting with the Dicks. I don't know that I had another meeting with the surveyor, I don't recall that I did. Again, there was much confusion having to do with a mobile home piece. Q What did the Dicks tell you as far as what they thought was going to be done with the mobile home? A The thing that I recall was that they thought they were going to retain the rental, the money, that was my understanding, and that is -- again, that was a serious conflict when I -- there was confusion on the plan because in the middle of section E it talks about ten acres, minus two acres, and I am not exactly sure what that means, but that was on the plan and that led to more confusion because it kind of indicated that the ten acres plus two acres was going to be retained by Mr. Dick, and I think he probably understood that too. There is a statement in the middle of E. Q Is that the statement on the middle of the left-hand side -- A Yes. Q -- it minus B two acres, A obviously, was telling me, says current 81.24 acres, minus A ten acres, residual 69.24 plus or minus acres? So that was very confusing to me and, Right. it was extremely confusing to Mr. Dick, because he I am retaining the two acres because I need the 122 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 rental. supposed to be concerned. Q I wasn't sure at all that that was really what was intended, especially as far as the agreement Because the agreement had not said anything about the mobile home being subdivided as well? A Well, it was confusing as to what that one paragraph at the bottom of the first page meant. Do you recall when you met with the realtors and Neidlinger any conversation about the mobile home in Q with Mr. particular? A was No, other than I probably asked questions as to what they understood the situation was. Again, it was very confusing to me because it was marked off as a -- less off the total acreage, minus the two acres, minus the ten acres. I probably should have called Larry to figure out what was going on but I didn't. Q With regard to Paul Dick, what sort of medical problems are you aware of that he has? A He is, obviously, very confused at times, he has been very confused. He has a neighbor who lives near where he -- that he sold a piece of ground off on his current farm out on the Enola Road that has caused him all kinds of consternation and problems and there are arrests and counter arrests going on there and that has become an issue that is very confusing to Paul. 123 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 So, usually, when I talk to Paul or he comes in to see me now, he is asking me about this neighbor. That has been going on for several years and, obviously, he has been very confused about a lot of different matters. I think I even called his son one time and I think we met together about this whole issue about Paul's confusion. Q How long would you say that he has had this confusion? A It has certainly been over 2 years. Q Has there been any change during the last two or three years? A I think it is getting progressively worse. Q In your opinion is he able to understand contracts and legal documents? A I understood back when this particular contract was going on, I thought I understood what he was planning to do. Therefore, I wasn't alarmed over the fact that he wanted to list the property. I do recall that I was very much concerned about what are you keeping and that the listing agreement was not clear about what he was selling and what he was keeping. But I thought at that time that he was able to understand because over the years I have handled numerous real estate transactions for him. Let me just say that he always did sell properties exactly as was testified to. He wculd arrive at a price, 124 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 1 2 3 4 5 whether it is a piece of mountain ground or whatever, and he would say I want $12,000, I want $,~0,000, and I am not going tc pay any costs at all, except I will pay you. So that is how he alwavs has sold property over the last ten or twelve years. There never was a realtor involved, there never was anything other than he would say this is my price, you pay the transfer stamps, and so forth, and that is how he always sold properties. Q So when he would say this is his saying that is his net price, that A Right. -- to get out of the Right. When he came Q A with him, price, he was is what we wants -- contract? in and I tried to go over all he was extremely confused as to why the property was listed at a certain price and that he wasn't getting what he listed it for. He never did understand that whole situation. Q But you think he was able to articulate what he wanted to retain and not sell? A No question in my mind that when I showed him that sketch and talked to him, he indicated that the top portion on that sketch is what they were keeping, the house and the barn and the pasture. Q that to Mr. A Did he tell you whether or not he had explained Kafkalas or how that came about? I understood that when they all got there that is 125 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 what was said, we are keeping this portion. I am assuming that the estimate was that it was ten acres; but I think it was pointed out what was supposed to be kept by the Dicks, by Mr. Dick. And I just think, as it was testified to, it turned out to be more than the ten acres because it was almost impossible to judge by just looking. MR. MILLER: No further questions at this time. THE COURT: Cross-examine. BY MR. ROBINSON: Q Mr. CROSS-EXAMINATION Irwin, prior to the meeting that you had in your office with Mr. Neidlinger, Kafkalas and Myers, at any time did Mr. Dick tell you or did you believe that he was no longer interested in selling the property. A I don't recall that, because that is why we had the meeting and why I agreed to meet with him, so I am not sure about that, I would say no -- Q When did you become aware that Mr. Dick no longer wanted to sell the property? A After I had this meeting, and I Showed him what was going on. Q The way I understand it, the meeting was held for Mr. Neidlinger to actually present this, although you wouldn't have known it at this time, to establish where the boundary 126 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 lines were going to be established, and that the Dicks didn't show up, was there any discussion about the boundary lines at the time? A Q A Q At the time of that meeting? Yes, sir. Oh, yes, we went over the plan. Did you explain your concerns to Mr. Neidlinger and the people at the meeting at the time? A About the acreage? Q Yes, sir. A That the second piece was not -- that it wasn't going to be included? Q Yes. A Yes, I think I indicated I felt that would be a serious problem. I know somehow, somewhere that I had heard about the stream or the creek and I don't -- I just remember hearing about that, I don't know what, why. That is why when we met I asked about that. Q With regards to parcel C, the rental itself, about the money that rental of this mobile home? A When I met with Mr. Dick. Q Would that have been before with the other gentlemen? A when did you learn about changes hands for the or after the meeting I am sure that was after the meeting. 127 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Q At the time of the meeting were you confident that the transaction was still going to go through? A I did not know. I was unsure. I think that is what I indicated, that I would be glad to meet with Paul and see if we could get this figured out. Q At the time did you have any awareness or would you have known what the price for an acre of land in the area would have been going for? A In that particular area? Q Yes, sir. A No, I am generally familiar with values. Q were you concerned about the amount of the offer on the agreement for the sale of land? THE COURT: You mean the per acre price, or is your question broader? What is your question -- MR. ROBINSON: I will rephrase it. I am sorry, Your Honor. THE COURT: So that I understand. BY MR. ROBINSON: Q When you first saw the agreement for the sale of land that had been executed between Mr. Herman and Mr. Dick with the finally negotiated price cf $180,000 for 70 acres, did that concern you? A I wouldn't say that I was concerned. I was a little confused, but I wouldn't say I was concerned, because I 128 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 was confused about what was included and what was excluded. I remember I tried to explain. I think I had some idea of the assessed value on the farm, and I was trying to explain. I think I tried to explain to Paul based on the assessed value that if you took the barn and all these other things off, you are going to have less of a price. Paul kept indicating that this whole thing, I am still going to get $250,000, that is what I am supposed to get. I had to go into a lot of detail with him to show that if you take off certain parts, you are not going to -- you are going to retain these, you are not going to get the full price. So we did have that conversation. Again, he was very confused about -- the one thing, that there were two estimated cost statements that had been introduced, seller's cost statements. He was very, very confused about the different figures on there and his net, what was he going to walk away with after he paid off his mortgage. Q Do you believe that the price on the agreement of sale is a fair price for the property? MR. MILLER: he is not -- THE COURT: looked at it and you see what fair from your point of view? A Objection, calls for speculation and Overruled, it is, if you know. When you a per acre price, is it I was not overly concerned about the per acre 129 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 price. I would probably be more concerned after today when I heard what the county assessment was. MR. ROBINSON: That is all I have, Your Honor. testimony? THE COURT: MR. MILLER: THE COURT: Any redireot ? No, Your Honor. Sir, you can step down. Any further MR. MILLER: Those are all the witnesses that I have, Your Honor. I would move for the admission of Defendant's Exhibit 1, 2 and 3, the sketch plan, listing contract, and the first seller's disclosure form. THE COURT: Any objection? MR. ROBINSON: No. THE COURT: They are admitted. Any rebuttal? MR. ROBINSON: No, Your Honor. THE COURT: The record is closed. (Court adjourned at 12:15.) 130 CERTIFICATION I hereby certify that the proceedings are contained fully and accurately in the notes taken by me on the above cause and that this is a correct transcript of same. Patricia C.~rrett~-~ Official Stenographer The foregoing record of the proceedings on the hearing of the within matter is hereby approved and directed to be filed. 131