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HomeMy WebLinkAbout06-3245BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, INC., DOCKET NO. Defendant O` _ 3214S N O T I C E You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the court without further notice for any money claimed in the complaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. YOU SHOULD TAKE THIS PAPER TO YOUR LAWYER AT ONCE. IF YOU DO NOT HAVE A LAWYER OR CANNOT AFFORD ONE, GO TO OR TELEPHONE THE OFFICE SET FORTH BELOW TO FIND OUT WHERE YOU CAN GET LEGAL HELP. Lawyer Referral Service Cumberland County Cumberland County Bar Association 32 S. Bedford Street Carlisle, Pennsylvania 17013 (800) 990-9108 By: Jam s D. Bog r Esquire Pa. I.D. No. 475 By; y ? ou Je r B. Hipp, Esquire Pa. I D. No. 86556 One West Main Street Shiremanstown, PA 17011 (717) 737-8761 Attorneys for Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW /}%J ?'- HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 01, 3?7 S (2"'// . TG2-/rj Defendant COMPLAINT Bernard V. Kelly, Jr., and Michele A. Kelly, Plaintiffs, by and through their attorneys, Jennifer B. Hipp, Esquire, and James D. Bogar, Esquire, respectfully represent as follows: 1. Plaintiffs herein are Bernard V. Kelly, Jr., and Michele A. Kelly, husband and wife, with an address of 5730 Aspen Lane, Enola, Pennsylvania 17025. 2. Defendant herein is Home Designs Unlimited, LLC, a limited liability company organized and existing under the laws of the Commonwealth of Pennsylvania, having its principal office at 199 Beagle Club Road, Carlisle, Pennsylvania 17013 and a mailing address of P.O. Box 387, New Kingston, Pennsylvania 17072. 3. Plaintiffs and Defendant entered into a written contract, dated January 13, 2003, for the construction of a residential property. A copy of the Residential Construction Contract is attached hereto, marked as Exhibit "A" and incorporated herein. 4. Paragraph No. 8 of the Residential Construction Contract specifies that Defendant "shall correct any work that fails to conform to the requirements of the contract documents where such failure to conform appears during the progress of the work, and shall remedy any defects due to faulty materials, equipment or workmanship which appear within a period of one (1) year from the date of completion of the contract." See Exhibit "A", Paragraph No. 8. 5. During the progress of construction of their home at 5730 Aspen Lane, Enola, Pennsylvania, Plaintiffs discovered several areas of Defendant's work that failed to conform to the requirements of the contract documents. 6. Plaintiffs contacted Defendant on multiple occasions to advise Defendant of the non-conforming work. 7. Defendants either ignored Plaintiffs' requests for remedy of the defective and substandard work and/or promised to remedy the defective work but failed to adequately do so. 8. Plaintiffs sent to Defendant by facsimile on August 30, 2004, September 16, 2004 and November 5, 2004 a "follow-up list" setting forth the outstanding items and work that failed to conform to the requirements of the contract documents. A copy of the follow-up list is attached hereto and incorporated herein as Exhibit "B". 9. Defendant advised Plaintiffs that it would address all of the items on the Plaintiffs' follow-up list. 10. Defendant failed to adequately follow-up and correct the faulty items or to follow-up at all. 11. Of the items listed on the follow-up list, only the serious storm water drainage problems persist. 12. Plaintiffs hired the engineering firm Gannett Fleming, Inc., to review their storm water drainage concerns. 13. Gannett Fleming, Inc., issued a report identifying the causes of the storm water drainage problems and recommending a course of action for remediation. A copy of the Gannett Fleming, Inc. report is attached hereto and incorporated herein as Exhibit .,C„ 14. On or about February 17, 2006, Plaintiffs provided a copy of the Gannett Fleming report (See Exhibit "C") to Defendant. 15. Defendant has failed to respond to Plaintiffs regarding the Gannett Fleming report or to take any of the remedial action as set forth in the report. 16. The cost to remediate the stormwater damage issues pursuant to the Gannett Fleming, Inc. report (See Exhibit "C") would be in the amount of nine thousand dollars ($9,000.00). 17. Plaintiffs have fully complied with all the terms of the Residential Construction Contract. 18. Plaintiffs have paid, in full, Defendant pursuant to the terms and conditions of the Residential Construction Contract. 19. Despite Plaintiffs' repeated demands, Defendant has failed and refused to respond to Plaintiffs' request for completion of the contractually obligated items. COUNT I - BREACH OF CONTRACT 20. The averments of Paragraphs 1 through and including 19 hereinabove are incorporated herein by reference thereto. 21. By virtue of the contract between Plaintiffs and Defendant, Defendant agreed to perform, in full, all of the items as set forth in the Residential Construction Contract. See Exhibit "A" 22. Defendant has failed to fully perform its obligations as set forth in the Residential Construction Contract. 23. To date, Defendant, despite proper requests and demands by the Plaintiffs, has failed to fully comply with the terms of the Residential Construction Contract. WHEREFORE, Plaintiffs demand judgment against Defendant, Home Designs Unlimited, LLC, in the amount of nine thousand dollars ($9,000.00), plus interest, together with the costs of this action, attorney's fees, engineering fees and any other relief deemed just and appropriate. COUNT II - QUANTUM MERUIT/IMPLIED CONTRACT 24. The averments of Paragraphs 1 through and including 23 hereinabove are incorporated herein by reference thereto. 25. Pursuant to the terms and conditions of the Residential Construction Contract, Plaintiffs fully remitted payment to Home Designs Unlimited, LLC. 26. Pursuant to the terms of the Residential Construction Contract, Defendant is obligated to complete all of the items related to the construction of the Plaintiffs' residential home at 5730 Aspen Lane, Enola, Pennsylvania in a workmen-like manner. 27. To date, Defendant, despite proper requests and demands by Plaintiffs, has failed to honor the terms and conditions of the Residential Construction Contract. 28. By reason of Defendant's request for payment by Plaintiffs, Defendant impliedly agreed to fully and adequately perform pursuant to the terms and conditions of the Residential Construction Contract. WHEREFORE, Plaintiffs demand judgment against Defendant, Home Designs Unlimited, LLC, in the amount of nine thousand dollars ($9,000.00), plus interest, together with the costs of this action, attorney's fees, engineering fees and any other relief deemed just and appropriate. COUNT III - UNJUST ENRICHMENT 29. The averments of Paragraphs 1 through and including 28 hereinabove are incorporated herein by reference thereto. 30. Defendant obtained payment from Plaintiffs in the full amount as set forth in the Residential Construction Contract. See Exhibit "A" 31. As a direct and proximate result of Defendant's refusal to perform pursuant to the terms and conditions of the Residential Construction Contract, Defendant has been unjustly enriched in the amount of nine thousand dollars ($9,000.00). , Plaintiffs demand judgment against Defendant, Home Designs Unlimited, LLC, in the amount of nine thousand dollars ($9,000.00), plus interest, together with the costs of this action, attorney's fees, engineering fees and any other relief deemed just and appropriate. Date: June 7, 2006 f e fifer B. Hipp, Esquire Pa. I.D. No. 86556 Ja s D. Boga Esquire Pa. I.D. No. 475 One West Main Street Shiremanstown, PA 17011 (717) 737-8761 Attorneys for Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly Residential Construction Contract EXHIBIT A- AGREEMENT made the \3?day of a 20 o3 by and between Home Designs Unlimited (hereinafter referred to as "Contractor') and '?'err y i of (hereinafter referred to as "Buyer") \_1056 WITNESSETH that in consideration of the mutual covenants and agreements herein contained, and in intending to be legally bound hereby, the parties hereto do agree to. the following terms and conditions: 1. De ' 'ons The following terms shall have the assigned meanings for the purposes of this agreement: 1.i. Contract Documents. The contract documents consist of this agreement (including specific and general conditions hereto), and drawings, specifications, plans, amendments and change orders relating to this agreement. These aforesaid documents constitute the entire contract between the parties, and shall not be modified except by written amendment to the said contract documents. The contract documents do not inclnde and specifically exclude any and all oral discussions, understandings, and agreements between the said parties prior to the execution of this agreement. See Exhibit A&B 1.2. Allowances. An allowance, as used in this agreement, means the Contractor's good faith estimate of the cost to.provide the work, supply, material or technical advice necessary -to complete the portion of the project identified, which may be adjusted up or down when actual costs have been calculated. 2. Contract Work. construction of a Contractor agrees to furnish all material and labor.necessary for the . In consideration for Contractor the sum of in accordance with paragraph (5) herein below, and subject to additions and/or deductions for other payments in accordance with paragraph (6) herein below and by change order as provided in subparagraph (5.3) of this contract. THE ABOVE STATED CONTRACT IS BINDING UPON CONTRACTOR ONLY IF THE CONTRACT WORK IS COMMENCED WITHIN 45 DAYS AFTER THE DATE OF THIS CONTRACT. IN THE EVENT CONTRACT WORK IS NOT COMMENCED WITHIN 45 DAYS FROM THE DATE OF THIS CONTRACT, CONTRACTOR, AT ITS SOLE OPTION, MAY TERMINATE THIS CONTRACT AND NEGOTIATE A NEW CONTRACT PRICE WITH BUYER 3. Obligations of Buver. 3.1. Prior to the commencement of construction, Buyer shall obtain and deliver to Contractor an attorney's certificate of title to the property, which certificate shall be in pro rtn, or other J upon the property of Buyer, which property is located and situated at proof of Buyer's ownership of the premises which is satisfactory to Contractor and its counsel. 3.2.' Buyer shall furnish to the Contractor all necessary surveys describing the physical characteristics, soils; reports and subsurface investigations, restrictive covenants, building restrictions, legal. limitations, utility locations,.and a legal.description of the building site. Buyer shall review the plans and specifications submitted by Contractor and shall give prompt written notice to the Contractor of any fault or. defect in the said plans and specifications. 3.3. Buyer shall pay to Contractor all sums due. and owing in accordance with paragraphs (5) and (6) herein below and shall maintain the insurance required by paragraph (7) of this contract. 4. Obligations of Contractor. 4.1. Contractor will provide all eonshuetion supervisions, inspection; labor, materials, tools, equipment, and subcontracted items necessary for the execution and completion of the contract work 4.2. Contractor will pay all sales, use, gross receipts and similar taxes related to the contract work to be provided by the Contractor, which taxes have been legally enacted at the time of execution of this agreement. . 43. Contractor shall supervise and direct the work, using his best skill and attention. 4.4. Contractor warrants to the Buyer that all materials and equipment incorporated into the contract work shall be new unless otherwise specified; and that all contract work will be of good quality, incontrinaance with the contract documents. 4.5. Contractor shall be responsible for the acts and omissions of its employees and all subcontractors engaged by. Contractor, their agents and employees, and all other persons performing any of the work under this contract on behalf of or with the Contractor. 4.6. The Contractor shall at all times keep the premises reasonably fife from the accumulation of waste materials or rubbish caused by the operations of the Contractor. At the completion of the work, the Contractor shall remove all tools, construction equipment, machinery and surplus materials, and shall leave the work "broom" clean or its equivalent, except as otherwise specified 5. Payment of Contract Price: Progress Payments. 5.1. In consideration for the performance of the contract work, Buyer agrees to pay Contractor, in c 1, funds, as compensation for its service% the contract pride of _ Lan 4LYykr"A MM SZXQ:: 6`V tin,,r k(vA (1.?uit?? ($ wags %w, c)b ) (subject to provisio of paragraph (2) of this contract). 5.2. The contract price shalt be paid by Buyer to Contractor based upon written applications for payment which may be submitted by Buyer at the fallowing times: $_9A_ Deposit due upon execution of this Agreement (Non Refundable): % of the Contract Price upon the completion of the foundation; % of the Contract Price when the roof is completed, when framing and sheathing are completed and when all windows are set in place; % of the Contract Price when the installation of electrical and phmnbing systems, in rough form, are -completed, ,ul? % of the Contract Price when the interior drywall is sanded "Y for painting; Balance of Contract Price, and any other payments required by paragraph (6) herein under, upon substantial completion of the building as outlined herein or at the time of occupancy of the building by Buyer: (Bank(Mortgage Co. payments and or Draw Schedule to override payment schedule of contract, with exception of Non Refundable Deposit) 5.3. The Buyer, without invalidating the contract, may order changes in the work consisting of additions, deletions, or modifications, the contract sum and the contract time being adjusted accordingly. All such changes in the work shall be authorized by written change order signed by the Buyer. 5.4. A change order is a written order to the Contractor signed by the Buyer or his authorized agent and issued after the execution of this agreement, authorizing a change in the project and/or an adjustment in the Contract Price, or the performance time schedule.' 5.5. The cost or credit to the Buyer for a change in the work shall be determined by Contractor 5.6. The making of final payment shall constitute a waiver or all claims by the Buyer except those arising from (1) unsettled liens (2) fitults or defects appearing within one"year after, completion or (3) failure of the work to comply with the requirements of the contract . documents. The acceptance of final payment shall constitute 'a waiver of all claims by the Contractor except those previously made in writing and still unsettled. 6. Other Payments. The following items shall be paid by the Buyer in addition to the contract price: • The cost of excavating which includes the cost of rock removal, regardless of whether such removal requires the aid of explosives. • Additional costs involved in providing extra engineering or foundation work which maybe required if the Contractor encounters abnormal or unusual subterranean conditions during the course of construction • The cost of extra concrete block and labor necessary to install the same for the construction of foundation that maybe required in excess of blueprint specifications. • The cost of labor and materials needed to divert or control surface or subsurface water found during the course of construction. • The cost of all fill and topsoil required to backfiR and grade the job site. • The cost of removal of all excess dirt and fill from the job site. 7, limmm` c. Unless otherwise .provided, the Buyer shall purchase and maintain property insurance upon the entire contract work at the site to the full insurable value thereof The insurance shall include the interests of the Buyer, the Contractor, and Subcontractors in the contract work and shall insure against the perils of fire, extended coverage, vandalism and malicious mischief, any insured loss to be adjusted with the Buyer and made payable to the Buyer as trustee for the insureds as their interests may appear, subject to the requirements of any mortgagee clause. The Buyer shall provide a copy of all policies to the Contractor prior to the commencement of the work. The Buyer and Contractor waive all rights against each other for damages caused by fire or other perils to the. extent covered by insurance provided under this paragraph. The Contractor shall require similar waivers by Subcontractors. 8. Correction of V?orF. The Contractor shall correct any work that fails to conform to the requirements of the contract documents where such failure to conform appears during the progress of the work, and shall remedy any defects due to faulty materials, equipment or workpkansbip which appear within a period of one year from the date of completion of the contract ors of this paragraph apply to the work of Subcontractors as well as to work done by.direct employees of the Contractor. Contractor does not, warrant a waterproof or damp proof basement. Contractor agrees to provide Buyer with a complete list of warrantable and non-warrantable items. -me Contractor makes, and there exist; no other warranties, written or implied, concerning the contract work or any other subject matter of this agreement. 9. Contract Commencement and Conletion s 9.1. The work to be performed under this contract shall be commenced on or about or within 15 days after the date Buyer bas filled all, obligations required by paragraph (3) of this contract, and except as otherwise provided or permitted by the contract, shall be. substantially completed not later than 1Xn dr?kl -" 6 &4rrr+14 Cec sA-r:Q+I? . 9.1 If the Contractor is delayed at any time in the progress of the construction work by any act or failure orneglect of the Buyer or by changes ordered in the project or by labor disputes, fire, unusual delay in transportation, adverse: weather conditions, unavoidable casualties, or any causes beyond the Contractor's control, or a delay authorized by the Buyer, then the date for substantial completion shall be extended by aperiod of time equal to the period of such delay. 9.3. Buyer acknowledges and understands that commencement and completion times represent the best professional estimation of the Contractor: Unless otherwise provided herein, Buyer shall be responsible for any and all rents, utilities and mortgage interest expenses or fees during the entire construction period, regardless of whether additional time is required for construction to be completed whether due to adverse conditions, scheduling problems, material non- availability, or for any other reason beyond the Contractor's control • Neither the Buyer nor the Contractor shall assign their or its respective interests in this agreement without the written consent of the other, except to the assignment of proceeds. • This agreement shall be governed by the laws in effect at the location of this project. Home Designs Unlimited Design & Construction Buy Buyer Authorized Signature veagn a eonsnnenon Job Name Benwdffi Michelle Kelly 'Date Jamuarv 13, 2003 'Location Lot#127-5730Asm Lane - - Phone 717.255.2213 Fnola, PA 17025 717-766-8077 W The Westbury Community - - L Earhmtes and.Alba9oces EeRhmoving Fixed NFU! me . rice Fxcaviuft Baakt-dling Rough Grade X Dtiv y Stone _ x _ . Dyrmoim Blasting Sealxmn6otcomnctia,cmuut ClemffiGrub - x Top Sal&Fill - Sahma86 ofConsumbon contemn . TOTAL ESTIMATES / ALLOWANCES FOR EARTNMOVINO 0.00 Miseelleneous Allowmrcesi - - , I. LiduinHPeckage Allowance ( includes rae md. bath fuwlidn combos, _ $ 1.800.00 - z dombdl ki4ame, detecta5, hdmioraad exlmionlidds)- -. - - S 3. --wmE: Suodrd Reasxd-S55.ODSeoh S . -a Eyeball Recessed-S65.00Eaeb - S s. - Souv $Ioeed Reoe>eod-595.00 Jbrclr' S .. r S 7 S TOTAL FOR MISCELLANEOUS ESTIMATES/ALLOWANCES S 1;800:00 TOTAL OF ALL ESTIMATES/ ALLOWANCES INCLUDED IN SECTION I' ... S 1,800.00 IL Home contract Price S 209,800.00 UL Herne Featares/Optlum Included in Section I or, nm Bitbibit A uestgn o: i umiruwws Standard' Specifications dnderdor . 6 Panel Masonite Doors . 3 ''/a" Colonial Baseboard Trim 2 %4" Colonial Casing . All Windows Trimmed - including Large Window Sills . GE (or equal) Appliances to Include Range, Hood or Microwave, Dishwasher, and Disposal (where applicable) Choice of Cabinet Wes - From Standard Line . Choice of Interior Floor Coverings From .Standard Line ( carpeting installed on 61b, pad ) . Choice of Countertops (choice of formica or cultured marble tops in baths) .. Beveled Edge Kitchen Countertops. - . Fiberglass Tub/Shower Combinations - Choice of White or Bisque . Moroi-Monti=116 Series Faucets in all Befits . R-38 Ceiling Insulation (R-30 in cathedral areas where applicable) . ' R=19 Sidewall Insulation R-19 Floor Insulation (when applicable) 52 Gallon Electrical Water Heater or/ 50 Gallon Gas where Applicable 13igh Efficiency Gas or Propane Furnace with Central Air • TV & Phone Jacks as per Plan ( 5 Phone Jacks & 5 TV Jacks ) . 2 Nanner Switches a All Bedrooms wired fw Fan/Light Combo slang with Switch Receptacles . 1 Fan/Light Combo with Switch Receptacle in Family Room/Den . Smoke Detectors as per Code (including all bedrooms) . (3) Garage Electrical Outlets Exterior . Steel insulated Exterior Doors . Smooth Star Series Front Doan - Sidelights as per Plan ( choice of full or half glass . Insulated Vinyl Windows with Tilt Feature and Grills . Vinyl Soffits and Fascia . Aluminum Seamless Gutters and Downspouts 25 Year Dimensional Fiberglass Shingles • : 2 Outside Hose Bilks (frost free) 2 Outside Electrical Outlets Door Chime at Front Entry Door Lights at all Exterior Doors -Pole Light were Applicable Frorerar & Consouc don . All Framing Sizes to meet Code . 2x6 Exterior Walls with 7/16" OSB Sheathing . '/." T&G Sub Floors . Pressure Treated Sill Plate . '/d' Underlayment Under all Vinyl Areas . 3" Perimeter Foundation Drains as Required a Radon System as Required e 200' Amp Service . WatchDog Waterproofing system . 10 Year Residential Warranty Program (RWC) Exhibit B Follow-up list - 5730 Aspen Lane (Kelly) -Repair crack and repaint vaulted ceiling in Master Bedroom. -Repair cracked tile around tub in Master Bath. -Remove blue strip on hard wood floor in hallway.. -Several windows have no insulation in them. -Large crack in the wall of the Family Room. ` -Floor in dining Room is uneven (slopes up) as you move towards the bay window. ( 51 nts 'In m icLli?) -Master Bath - Top part of one of the windows will not stay up. -Crack in wall of Master Bedroom by the bathroom archway. -Hallway floors are uneven. -Handle on sliding screen door sticks. -Back left bedroom door rubs on the carpet. -Squeaky doors on bonus room and door from house to garage. -Window in front left bedroom sticks - difficult to move up & down. -Wood under sliding door needs to be replaced (outside). -Both sets of stairs never screwed into beams (per employee of HDi1). -Misc. nail pops. -Large number of cracks and gaps in corners (both wall and base boards). -THE YARD! -Contact McNaughton regarding water problem being caused by run-off from his property. (Tell them your client is pissed): -fix caulking on kitchen tile -install 5 dimmer switches as requested at Christmas time -crack in wall in bathroom by towel bar -squeaky floorboards in living room, dining room, and bonus room -check siding above front door (rust stains?) -left door of toaster bathroom sticks -windows not sealed well - cold air blows in around edges and back rooms can be freezing! -possible moisture in some back windows l\i1Ph C?u`?' oboe" ?t3??r'Y? D+r C\ /? il'1QS?-Y ?-e?DM C?oSL'-?' closr Yu?j;rr? •4-l?r ` Cxock o?(XVe Cn?t? i i n 1G 1+?r? 0 cam; t-i ock or. qZ4 8b" sticks 5tuPA4 bey t d ti tter ,?s ?a it hall 9/1(? Job. - vm EXHIBIT Gannett Fleming ('ele6raa{rto W ears o January 23, 2006 Mr, Bernie Kelly 5730 Aspen Way Enola, PA 17025 OANN91T FLEMING, INC. P.O. Box 87100 Hanitsburg, PA 17108-7100 Location: 207 8We Avenue Camp PA 17011 O81ac 17 783.7211 Fix; (71 763.6180 www.gannettseming.com Re; Kelly Residence (Lot 127, Westbury Development) Hampden Township, Cumberland County, PA Storm Water Drainage Problems Gannett pleming Job Number: 045602 Dear Mr. Kelly: Gannett Fleming, Jne. is pleased to provide you with this letter describing our findings from a July 8, 2005 meeting with W. Jerry Spease, Hampden Township Engineer, from two separate site visits to your property, which were held on June 9 and July 8, 2005, and review of the plans for Phuo 6B and Phase 7A and 7B, Please note that these findings are based on a review of the approved plans with the Township and visual observations from site visits. A site survey was not performed to verify field conditions. Cerrently, at the rear of the Kelly residential property, stormwater is being concentrated in a low area located approximately in the center of the yard, not far from the edge of apatio and the house. Stormwater collects in this area and remains after the storm event has ceased. We believe there are four (4) factors contributing to this drainage problem 1. The Kelly property along with their neighbor's property to the south are graded to direct stormwater from the upstream drainage area through the center of their rear yards, without any 6tormwater collection and conveyance facilities to handle the stormwater flows. A stormwater inlet (1-67-A from Phase 7A and 7B plans) is located at the southwestern corner of the Kelly property. The grate of this stormwater inlet is higher than the surrounding land, and is not collecting surface stormwater flows, From the review of the approved plans for Phase 7A and 7B of the Westbury Development, there is a 20' stormwater easement located at the rear and southwestern side lot lines of the Kelly property (10' on each side of the property line). From the review of the approved plans for Phase 7A and 7B of the Westbury Development, the Phase 6B lots were to have been graded to direct stormwater to the front and rear of the properties, with a swale dtrcrdng upstream surface runoff into the stormwatu inlet (I-67-A). It is important to note that we were told, in the July 8, 2005 meeting with Ivir. Jerry Spease, that Hampden Township does not require individual lot grading to be shown on Residential Subdivision Plans and the plans for Phase 6B of the Westbury Development did A 7lndisdon of Excellence Since 1915 r EXHIBIT r C Gnnneit Fleming Mr. Bernie Kelly 1/23/2006 Page 2 not show proposed grading for the lots. The approved Phase 6B plans did show grading for Aspen Lane, which showed the Kelly's lot approximately 6' higher than the road elevation along the frontage of the property, We do not believe that the Kelly's first floor elevation is approximately 6' higher then the road elevation along the property frontage. Section 506(2)(H) of the Hampden Township Subdivision and Land Development Ordinance states "Lots shall be laid out and graded to provide positive drainage away from buildings and septic systems. The Township Commissioners may require a grading and drainage plan for individual lots indicating it buildable area within each lot, complying with the setback requirements, for which positive drainage is assured." Also Section 507(1) and (2) (Lot Grading for Subdivisions and Land Developments) states (1) 'Blocks and lots shall be graded to provide proper drainage away from buildings and to prevent the collection of stormwater in pools, Minimum 2% slopes away from the structures shall be required, for a distance of 10 feet" and (2) "Lot grading shall be of such design as to carry surface waters to the nearest practical street, storm drain or natural watercourse. Where drainage swalos are used to deliver surface waters away from the buildings, their grade shall not be less than I % nor mom than 4%. The swales shall be sodded, planted or lined as required, A grading and drainage plan shall be required for all land developments." The Kelly's sump pump is located such that flows from the sump pump contribute to the ponding and wetness in the back yard. The sump pump should be directed away from the back yard, which would reduce the amount of water to the back yard and also eliminate a source of water that continues after the runoff from the storm has ceased. 2. We do not believe that the storm sewer system from Longwood Lane is collecting stormwater as intended by the approved plans, The approved plans for Phase 7A and 7B of Westbury Development have a stormwater inlet (I-67-A) located at the southwestern comer of the Kelly lot within a stormwater swale, Stormwater inlet I-67-A is installed, however it is not installed in a low point to collect water and is located too high to collect surface runoff, At the time of the site visits, I-67-A had a sediment filter bag installed in the inlet, which did not allow us to look in the inlet. However, based on the approved plans for Phase 7A and 7B, Inlet I-67-A is 5.84' deep. There is a stormwater manhole (ST-MR-2) installed at the northwestern corner. The manhole has a solid cover installed and is installed higher than the surrounding land, We believe this system should have boon installed within a stormwater swate. The land around the inlet I.67-A should be graded to direct surface runoff to the inlet. This stormater system located at the rear of the Kelly property connects into the Aspen Lane storm sewer system, which flows to a stormwater management facility. Runoff from these lots is currently not being collected by inlet I.67-A to direct the flow towards the stormwater management facility, but instead is flowing into the drainage channel at the northern side of the Kelly lot and to Sears Run, 3. It does not appear that topsoil was reapplied upon final grading and prior to seeding of the area. Areas of the lot appear to be compacted significantly enough to limit the soils ability to absorb stormwater, specifically there is an area along the western property line that, as you have stated, was used by construction equipment to travel between Phase 6B and Phases 7A and 7B. This area is actually still mounded up as to depict a travel way from your lot back Genet Fleming Mr. Bernie Kelly 1/23/2006 Page 3 towards Phase 7B. The compacted soils along with the lack of topsoil on the drainage area is limiting the absorption of stormwater by the soil and increasing the amount of runoff directed through your property. As stated in the Hampden Township Laud Development Ordinance, Section 510.(5) (Topsoil Preservation) "All of the topsoil from areas where cuts and fills have been made should be stockpiled and redistributed uniformly after grading. All areas of the site shalt be stabilized by seeding or planting on slopes of less than ten (10) percent and shall be stabilized by sodding on slopes 1096 or more and planted in ground cover on slopes 20% or greater." Please note that a soils scientist has not been consulted on the conditions of the site soils. 4. There is minimal slope across the Kelly rear yard, except for along the northern side of the property. The stormwater from upstream lots and the Kelly's sump pump are collecting in this minimum sloping area, creating pending and puddles. Based on the site visits, it appears an attempt was made to help alleviate the ponding of atormwater in the Kelly rear yard. A perforated PVC pipe outlet is located at the top of the elope at the northern side of the property. Mr. Kelly stated that the contractor had installed a stone trench with this perforated pipe to help collect the stormwater from this ponding area. On July 8, 2005 we had made our second site visit, which happened to be the afternoon after a morning rain. Water was ponded in the yard; however no water was flowing out of the end of the PVC pipe. We do not believe this attempt is helping the drainage problem as we did not see any proof of flow leaving the PVC pipe. We believe that the above mentioned factors are contributing to the drainage problem in the Kelly rear yard. We feel that the Kelly lot along with their upstream neighbors lots should have been graded towards the rear lot line and stormwater should have been collected and conveyed in a swale along the rear property line to inlet I-67-A. If you should have any questions, please feel free to call me at (717) 763-7212, Extension 2214, Sincerely, GANNETT PI.SMING, INC. Pater S. Joyce, P.E? Project Manager VERIFICATION We verify that the statements made in this Complaint are true and correct. We understand that unsworn statements herein are made subject to the penalties of 18. Pa. C.S.A. § 4904, relating to unsworn falsification to authorities. Date: UUI1C I 2006 1?- Bernard V. Kelly, Jr. Mic ele A. Kelly 1y ?. '? ? ? ^?. r) `? 'iii c.. ?? .? ?? ? '? ' h ;,?. z„ '?, >r-, :: rn ?n ,`- O :{ pd\ntc\HU EDESIGNSke11y-notice STONE LAFAVER G SHERLETSKI BY ELIZABETH B. STONE SUPREME CT. ID.#60251 414 BRIDGE STREET NEW CUMBERLAND, PA 17070 717-774-7435 BERNARD V. KELLY, JR. and MICHELE A. KELLY, Plaintiffs, V. HOME DESIGNS UNLIMITED, LLC., Defendant ATTORNEYS FOR DEFENDANT HOME DESIGNS UNLIMITED, LLC : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA NO. 06 - 3245 CIVIL TERM CIVIL ACTION - IN LAW JURY TRIAL DEMANDED NOTICT You have been sued in court. If you wish to defend against the claims set forth in the following pages, you must take action within twenty (20) days after this complaint and notice are served, by entering a written appearance personally or by attorney and filing in writing with the Court your defenses or objections to the claims set forth against you. You are warned that if you fail to do so the case may proceed without you and a judgment may be entered against you by the Court without further notice for any money claimed in the com- plaint or for any other claim or relief requested by the plaintiff. You may lose money or property or other rights important to you. You SHOULD TARE THIS PAPER TO YOUR LAMYER 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 32 South Bedford Street Carlisle, PA 17013-3302 Telephone: (717) 249-3166 n E/Z 900Z-E0-L0 W _e 9z 11Z410 N3H9:tl3AVde1 3NO1S 8995 4LL LLL Le han demandado a usted en la corte. Si usted guiere defenderse de estas demandas expuestas en las paginas siguientes, usted tiene viente (20) dias de plaza al partir de la fecha de la demanda y la notificacion. Usted debe presentar una apariencia escrita o en persona o par abogado y archivar en la corte en forma escrita sus defensas o sus objectiones a las demandas en contra de su persona. Sea avisado que si usted no se defiende, la corte tomara medidas y puede entrar una orden contra usted sin previo aviso o notificacion y par cualquier queja o alivio que es pedido en la peticion de demanda. Usted puede perder dinero o sus propiedades o otros derechos importantes para usted. IaJ= ESTA DEWNDA A UN ABODAGO ISMIATA EMM. SI NO TIENE ABOGADO O BI NO TIMM EL DIMMO SUPICIENRE DE PAGAR TAL SERVICIO, VAYA EN PERSONA O WJM POR TELEP'0N0 A LA 08ICINA CQYA DIRECCION SE ENCOSNTRA ESCRITA ASAJO PARR AVERIGOAR DONDE SQ PDEDE CONSEGOIR ASISTENCIA LEGAL. CUMBERLAND COUNTY BAR ASSOCIATION 32 South Bedford Street Carlisle, PA 17013-3302 Telephone: (717) 249-3166 -2- n £/£ 900Z-CO-LO "we 9V:4Z:?0 )13H9:2i3AVd81 3NOLS 898£4LL LLL 77 J Eo,s\pd\ans\homedesignskellYpreobj STONE LAFAVER & SHEKLETS BY ELIZABETH B. STONE SUPREME CT. ID.#60251 414 BRIDGE STREET NEW CUMBERLAND, PA 17070 717-774-7435 ATTORNEYS FOR DEFENDANT HOME DESIGNS UNLIMITED, LLC BERNARD V. KELLY, JR. and MICHELE A. KELLY, Plaintiffs, V. HOME DESIGNS UNLIMITED, LLC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA NO. 06 - 3245 CIVIL TERM CIVIL ACTION - IN LAW JURY TRIAL DEMANDED DEFENDANT'S PRELIMINARY OBJECTIONS TO PLAINTIFF'S COMPLAINT AND NOW, comes the defendant, Home Designs Unlimited, LLC., by and through its attorneys, Stone LaFaver & Shekletski, and files the following preliminary objections pursuant to Pa. R. C. P. §1028 et seq., and in support thereof, avers as follows: DEFENDANT'S PRELIMINARY OBJECTION PURSUANT TO PA. R.C.P. 1028 (a)(6) PRIOR AGREEMENT FOR ALTERNATIVE DISPUTE RESOLUTION 1. Plaintiffs signed a home warranty contract issued by Residential Warranty Corporation - New Home Warranty, on September 18, 2003, with the Defendant. Pursuant to the RWC program, this warranty includes a provision for binding 7 arbitration in the event that there is a dispute. Plaintiffs have failed to plead specifically this provision in the warranty contract; therefore, this complaint must be dismissed for prior agreement for alternative dispute resolution. Attached herein is a copy of the warranty contract, marked as Exhibit "A", and made a part of the record thereto. WHEREFORE, Defendant requests that this Honorable Court dismiss the Plaintiffs' complaint with prejudice. tted, Respectfully ZHaJEI STONE LaFAVER Elizal th tone, qu Sup 4 . C I 0251 14 7 rid S ree Box E 15d, n 1770 N 17) 774e7 3 t DATED: q13 `z)k YH. Sto &) quire Sup. . I 39785 414 Bridge Street, Box E New Cumberland, PA 17070 (717) 774-7435 Attorneys for the Defendant II ..J EXHIBIT "A" ~ APPIICAItEtr)rN enFOR WARRANTY FORM ApplicationNo. 2365401 ResidenfalT.Wty Corporation-New Home Warranty ANUWAW ,;T LIMITED WARRANTY CJWAFONQ&MW Compleie ALL information in spaces provided. WPIC 319 REV. 09 / 01 smeeeer31ee.nwdam.PA17111 See hack for detailed instructions. - - eh:stt-%uw° r" 7n-1st + Attach, a copy of the seulment sleet to this form 99/1 f/ 290' 1. Bauder Namq.8010 DEBIT UNLIMITED Registmdm Number 010618 2. Lot/fob • 127 Block # Devetopmmtlsnbdividon WEBTBUR7! House Numbei•aadShod Name 3736 ASPEN LN City ENOLA state PA TIP 17025 3. If the mailing address to be and for this home is diRamt from 42, plena 4.. se ]odng Date: s. ?. Fun Occupancy Der. .. 4F"dmDt QfWdrmvO_rtratr..rprr ttrea.eaa.,w.. tw.aJ??abw _ . IS ?' dam. whkh . L? s, mad saes price (madnrm uabluty) s "?' 6. Type of Ple ata? (duckekek qua emimaUCaWNDtbtir' ?' a VA O MA cams r - .-?•? 7. `Bscladom: The Penchant saknowledges that the Booed :oases. Ffaoy.. will not be warn mad by me RWC Waeaety dace day wave not an euiaded by aonaef or mg as trelhde4' dms ffi et mint pedb& (iWWWM* ft0baer Ent 61111 1111 NW U e'esdadsar.} c%a eJM a. Bauch: type of son (cheek cm): sou i3 Aodve Sell 0 PID O Other >".Comwsorare RWCCandmddomlDh. B1lkctiveDaft eithisbotodNemeoatt ilk New J®sar ONLY= Maaicipd Code: ?: ? r :Namhtirofadbia0dblai.(drdeoaak L 2 - 3¢4.? ?::&rfi,d ,- A9f9Itf?IJM•(f?+6?tF?,nr44"..c. Owens Type(4mckate): C Bomroarmr':Amao.-Emd to .,, G NotfotmmPAm"PAga dun-,tae,stmpie... RCaadotCaopmnrtve "Cbw t bese it thin hams is abm bdag meshed j? "Plmioom Advantage Bumded Waaanq Pmgmm ; If eovaragp is bang declined, the homeower(e) most "m hue k4L MNW aepmwmme"s MSBUM. - 1-Im, hit „r d.manaem.dmaaeamainynmw.L RURJ)BRsmdtoRWC(S=D=ySftcmBmisbmg,PA17111-3m) ranybooke, ubkod°g ?Top 2 copies of this form ?A copy of the walcumt sheet X X *'A cbeck for TOTAL DUB (we ccakellstimr above). mod. 7,7 two , rnr •e Y. ; 23665?4*1??NFIC 319 Riot,.; 09?0a - awcmteuw.sm fitgWdaPBrB._-PURCHASER GOLD-BUILDER a.d.6q,re O'WHIT APLWW -RWC(Indudecopyafunkmems"icheck v hJ ?} ( J -i I t?_. F:r? .-1 C.- T ?i t' ? ?i rn _. "-j.?1 ??J ._-? P-? :-4. BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant ANSWER OF BERNARD V. KELLY. JR. AND MICHELE A. KELLY TO DEFENDANT'S Bernard V. Kelly, Jr. and Michele A. Kelly, Plaintiffs, by and through their attorneys, James D. Bogar, Esquire, and Jennifer B. Hipp, Esquire, hereby file their Answer to Defendant Home Designs Unlimited, LLC's Preliminary Objection and respectfully represent as follows: 1. Admitted in part, denied in part. It is admitted that Plaintiffs entered into a home warranty contract with Defendant. It is specifically denied that any provisions in the home warranty contract require binding arbitration for resolution of the issues presented in Plaintiff's Complaint. By way of further answer, the allegations set forth in Defendant's Paragraph No. 1 are conclusions of law to which no response is required. 2. On or about December 31, 2004, Defendant's representative, Denise P. Thompson, Vice President, Home Designs Unlimited, LLC, advised Plaintiffs that the storm water drainage issues were not covered or included in the home warranty contract. A copy of Ms. Thompson's December 31, 2004 correspondence is attached hereto and incorporated herein as Exhibit "A". WHEREFORE, Bernard V. Kelly, Jr. and Michele A. Kelly, respectfully request that this Honorable Court overrule Defendant, Home Designs Unlimited, LLC's Preliminary Objection and order that Defendant file its Answer to their Complaint and order any other relief as is deemed appropriate. Respectfully submitted, Date: July20, 2006 Jenn r B.' Hipp, Esquire Pa. . No. 86556 JA es D. Bo , Esquire Pa. I.D. Noa9475 One West Main Street Shiremanstown, PA 17011 (717) 737-8761 Attorneys for Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs V. HOME DESIGNS UNLIMITED, LLC, Defendant : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW DOCKET NO. 06-3245 CIVIL TERM CERTIFICATE OF SERVICE I, Jennifer B. Hipp, Esquire, hereby certify that I am this day serving the foregoing Answer to Preliminary Objection upon the following named individual this day by depositing same in the United States Mail, First Class, postage prepaid, at Shiremanstown, Pennsylvania, addressed as follows: Elizabeth B. Stone, Esquire Stone LaFaver & Shekletski 414 Bridge Street, P.O. Box E New Cumberland, PA 17070 Date: July 20 , 2006 Esquire UNLIMITED _ ?esi?x c-G `?"parastructiox - - www.HomeDesignsUnlimited.com - December 31, 2004 Attn: Jennifer B. Hipp James D. Bogar' One West Main Street Shirememanstown, PA 17011 SENT VIA FAX AND US MAIL Dear Ms. Hipp, This letter will serve as our written response to your letter dated. December 14, 2004 and our phone conversation on December 16, 2004. As we discussed, the majority of the Kelly's year-end warranty items have been scheduled and completed. According to our records, on November 15, 2004 our representative completed all the covered warranty items on the list with the exception of those that required further action and/or scheduling by our sub contractors. Those items are as follows: 1. Drywall Cracks/Repain - On 12/08/04 Geesaman Drywaller's completed some work, but due to limited time available all the required repairs could not be completed. The Kelly's were instructed by the drywallers to contact their office to schedule the balance of the work to be completed. According to their records, they were never contacted to re-schedule. 2. Windows This will require a scheduled meeting with our window representative to inspect and evaluate the windows that the Kelly's are experiencing a problem with. Any corrective measures and/or parts will be scheduled and/or ordered upon the completion of this evaluation. This inspection can be scheduled as soon as the Kelly's have available time. 3. Un-Level Floors -These issues could not be addressed during our scheduled work list on November 15, 2004. This will require and inspection by our Framing . Contractor. At his recommendations, we will then take the necessary corrective actions to address their concerns. This inspection can be scheduled as soon as the Kelly's have available time. P.O. Box 387, New Kingstown, PA 17072.Office 717-960-0295 • Fax 717-960-9744 HDU@HomeDesignsUnlimited.com Ibis leaves only (2) items on the Kelly's year-end warranty list that are not considered warranty issues and will not be completed by Home: Designs Unlimited. They are the installation of (5) dimmer switches and the backyard drainage issues. The dimmer switches are not part of the Kelly's contract. or are they considered a warranty item. We have suggested to the Kelly's in the past that they should contact Gaffney's Electrical Contracting @ 717-432-9473 directly,to obtain a quote and schedule this work to be completed., As it relates to the backyard drainage issue, it is our position at this time that the backyard drainage issues the Kelly's are experiencing is not considered a covered warranty item as outlined in the Warranty Standards - Year One Coverage - 3.16 provided to them by the Residential Warranty Corporation. As you are aware, we have already completed additional work at the Kelly's residence above their contract for which we have never received payment. The Kelly's, authorized'this work prior to any work commencing. We certainly understand the frustration the Kelly's must be experiencing as a result of this water drainage problem. However, we feel that other factors are contributing to their problem that is beyond the control of Home Designs Unlimited Please be assured that we will appropriately address the balance of items with the Kelly's home that are considered.builder's responsibility as set forth in their Year One Residential Warranty Coverage. If you have any questions or require clarification of their warranty, please feel free to contact. the Residential Warranty Corporation @ 717-561- 4480. I will look forward to hearing from you in an effort to bring this matter to a quick and complete close that will be satisfactory to all parties involved. Sincerely, Home Designs 'ited LLC ign & Cons u n - Denise P. Thompson Vice President Cc: David R. Thompson-President File r? r'7 ??? = ?.. ;t _ _a S . : -r,, t: r .. p.J L; 7^ C` BERNARD V MICHELE A KELLY, JR., and KELLY, Plaintiffs : IN THE COURT OF COMMON PLEAS OF : CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant PLAINTIFFS BERNARD V KELLY JR AND MICHELE A. KELLY'S PRAECIPE FOR LISTING CASE FOR ARGUMENT 1 2 State matter to be argued: Defendant Home Designs Unlimited, LLC's Preliminary objections to Plaintiffs Bernard V. Kelly and Michele A. Kelly's Complaint and Plaintiffs' Answer to Defendant's Preliminary Objections. Identify counsel who will argue case: (a) for Plaintiff: James D. Bogar, Esquire Bogar & Hipp Law Offices One West Main Street, Shiremanstown, PA 17011 Telephone number: (717) 737-8761 Facsimile number: (717) 737-2086 (b) for Defendant: Elizabeth B. Stone, Esquire* 414 Bridge Street, P.O. Box E New Cumberland, PA 17070 Telephone number: (717) 774-7435 Facsimile number: (717) 774-3869 *attorney listed of record for Defendant 3. We will notify all parties in writing within two days that this case has been listed for argument. 4. Argument Court date: September 6, 2006 Respectfully submitted, Dated: August 16, 2006 BY. ?J&j6w' James . Bogar, E,quire Bogar & Hipp La ffices One West Main Street Shiremanstown, Pennsylvania 17011 Telephone: (717) 737-8761 Facsimile: (717) 737-2086 Supreme Court ID No. 19475 Attorney for Plaintiffs r ? BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant CERTIFICATE OF SERVICE On this date we do swear and affirm that a true and correct copy of Plaintiffs Bernard V. Kelly and Michele A. Kelly's Praecipe for Listing Case for Argument in the above-captioned matter was served upon Defendant, Home Designs Unlimited, LLC, by forwarding a copy thereof to Elizabeth B. Stone, Esquire, attorney of record for Defendant to the following address, by First Class United States Mail as follows: Elizabeth B. Stone, Esquire 414 Bridge Street, P.O. Box E New Cumberland, PA 17070 Dated: August 16, 2006 By: l 4 , Ja es D. B ga , Esquire Pa. I.D. N 9475 1 West Main Street Shiremanstown, PA 17011 (717) 737-8761 -, r ?. ? vc.? mr? °- ? ?r m ??n C.. :Iti": ? <.)? ? < ? T. <:r m :? ? .. BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs VS. HOME DESIGNS UNLIMITED, LLC., Defendant TO THE PROTHONOTARY: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2006-3245 CIVIL TERM PP.AECIPE Please remove the above case from the argument court scheduled for September 6, 2006, without prejudice to have the matter re-filed for disposition at a later date. Date: 9*?e? t' app 1 West Main Street Shiremanstown, PA 17011 Jafnes D. Bar Attorney at aw Supreme Cou # 19475 _ tQ BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs vs. HOME DESIGNS UNLIMITED, LLC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2006-3245 CIVIL TERM PRAECIPE TO THE PROTHONOTARY: Please enter my appearance for the Defendant, Home Designs Unliminted, LLC in the above matter. Date: 3? f?u 2b el L. Andes Attorney at Law Supreme Court ID #17225 525 North 12'h Street P.O. Box 168 Lemoyne, PA 17043 (717) 761-5361 TO THE PROTHONOTARY: Please withdraw the appearance of the undersigned as attorney for the Defendant, Home Designs Unlimited, LLC in the above matter. STONE, LaFAVERX SHMLETSKI Date: 5-6u, David H. Stoney V Attorney at Law Supreme Court ID # 3 Sf 414 Bridge Street New Cumberland, PA 17070 (717) 774-7435 o C7 -?, C;rl 1 F ?`r? i' F'v' -n 'Ry, 4J ?? BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant PLAINTIFFS BERNARD V. KELLY JR. AND MICHELE A. KELLY'S PRAECIPE FOR LISTING CASE FOR ARGUMENT 1. State matter to be argued: Defendant Home Designs Unlimited, LLC's Preliminary Objections to Plaintiffs Bernard V. Kelly and Michele A. Kelly's Complaint and Plaintiffs' Answer to Defendant's Preliminary Objections. 2. Identify counsel who will argue case: (a) for Plaintiff: James D. Bogar, Esquire Bogar & Hipp Law Offices One West Main Street, Shiremanstown, PA 17011 Telephone number: (717) 737-8761 Facsimile number: (717) 737-2086 (b) for Defendant : Samuel L. Andes, Esquire 525 North 12th Street P.O. Box 168 Lemoyne, PA 17043 Telephone number: (717) 761-5361 Facsimile number: (717) 761-1435 3. We will notify all parties in writing within two days that this case has been listed for argument. W 1' 4. Argument Court date: October 25, 2006 Respectfully submitted, Dated: September 25, 2006 BY. James D. Boga squire Bogar & Hipp L Offices One West Main Street Shiremanstown, Pennsylvania 17011 Telephone: (717) 737-8761 Facsimile: (717) 737-2086 Supreme Court ID No. 19475 Attorney for Plaintiffs BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs V. HOME DESIGNS UNLIMITED, LLC, Defendant : IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW DOCKET NO. 06-3245 CIVIL TERM CERTIFICATE OF SERVICE On this date we do swear and affirm that a true and correct copy of Plaintiffs Bernard V. Kelly and Michele A. Kelly's Praecipe for Listing Case for Argument in the above-captioned matter was served upon Defendant, Home Designs Unlimited, LLC, by forwarding a copy thereof to Samuel L. Andes, Esquire, attorney of record for Defendant to the following address, by First Class United States Mail as follows: Samuel L. Andes, Esquire 525 North 12th Street P.O. 168 Lemoyne, PA 17043 Dated: September 25, 2006 By: Jam 4s D. Bo a , Esquire Pa. I.D. No. 9475 1 West Main Street Shiremanstown, PA 17011 (717) 737-8761 C? ?? .a ?? ;,?-, _ ? ?? ? ? =?_ ? SHERIFF'S RETURN - REGULAR CASE NO: 2006-03245 P COMMONWEALTH OF PENNSYLVANIA: COUNTY OF CUMBERLAND KELLY BERNARD V JR ET AL VS HOME DESIGNS UNLIMITED INC VALERIE WEARY Sheriff or Deputy Sheriff of Cumberland County,Pennsylvania, who being duly sworn according to law, says, the within COMPLAINT & NOTICE was served upon HOME DESIGNS UNLIMITED INC the DEFENDANT , at 1149:00 HOURS, on the 13th day of June 2006 at 199 BEAGLE CLUB ROAD CARLISLE, PA 17013 by handing to CHERIE SCHOCK ADULT ON CHARGE a true and attested copy of COMPLAINT & NOTICE together with and at the same time directing His attention to the contents thereof. Sheriff's Costs: So Answers: Docketing 18.00 Service 4.40 Postage .39 Surcharge 10.00 R. Thomas Kline 32.79? 00/00/0000 Ch,,, ?/i glop Sworn and Subscibed to By: I, before me this day D uty Sheriff ...ri +i of A. D. BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs VS. HOME DESIGNS UNLIMITED, LLC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2006-3245 CIVIL TERM DEFENDANT'S PETITION TO COMPEL ARBITRATION AND NOW come the above-named Defendant, by its attorney, Samuel L. Andes, and petition the court to compel the Plaintiffs to submit their claims to binding arbitration, based upon the following: 1. The Petitioner herein is the Defendant. The Respondents are the Plaintiffs. 2. The claims in this matter arise out of a residence which the Defendant consulted for the Plaintiffs and claims Plaintiffs have made as to the workmanship provided by Defendant and various implied warranties arising out of the contract between the parties. 3. At the time the parties signed the contract they discussed a home warranty program available to Plaintiffs from the Residential Warranty Corporation (hereinafter "RWC") and Plaintiffs were provided with a copy of the warranty documents, a copy of which are attached hereto and marked as EXHIBIT A. 4. After Defendant had substantially completed the construction of the home for Plaintiffs, Plaintiffs elected to accept RWC's limited warranty program and, at the time, completed and signed an "application for warranty form", a copy of which is attached hereto and marked as EXHIBIT B. 5. Thereafter, RWC accepted the application of the parties and issued its limited warranty to the Plaintiffs for the residence. 6. As noted in the application for warranty form, the warranty includes a provision for binding arbitration. By completing the application and accepting the terms of the warranty, Plaintiffs accepted the provision of the warranty requiring them to submit their claims to binding arbitration. 7. By the express terms of the application for warranty form, the Plaintiffs, by accepting RWC's limited warranty, waived all other "... warranties, oral arguments, or representations" and acknowledged that the Defendant made no "warranty, express or implied as to quality, fitness for a particular purchase, merchantability, habitability or otherwise" except as expressly set forth in the RWC limited warranty. 8. As a result of the above, Plaintiffs must submit the claims in this matter to arbitration pursuant to the RWC limited warranty program. 9. Defendant does not have a copy of the final warranty booklet or document issued by RWC to Plaintiffs and believes that document is within the exclusive possession and control of Plaintiffs. Defendant, However, believes that the document attached hereto and marked as EXHIBIT A is identical to the booklet provided to Plaintiffs in January of 2003 and thereafter provided to Defendants by RWC. WHEREFORE, Defendant prays this court to enter an order compelling Plaintiffs to submit their claims in this matter to binding arbitration in accordance with the terms of the RWC limited warranty document and to stay all further proceedings in this matter until the arbitration process has been completed. Samue . Andes Attorney for Defendant Supreme Court ID #17225 525 North 12th Street P.O. Box 168 Lemoyne, PA 17043 (717) 761-5361 ., I verify that the statements made in this document are true and correct. I understand that any false statements in this document are subject to the penalties of 18 Pa. C.S. 4904 (unsworn falsification to authorities). Home Designs Unlimited, LLC Date: DAVID R. THOMPSON, Pr sident EXHIBIT A ESIDENTIAL 1111AARRANTY ORPORATIONP 1 10 Year New Home Warranty RESIDENTIAL WARRANTY CORPORATION PRESENTS THE LIMITED WARRANTY 10 YEAR WRITTEN WARRANTY FOR NEW HOMES Within 90 days after receiving this War= ranty book, you should receive a validation sticker from RWC. If you do not, contact your Builder to verify that the forms were properly processed and sent to RWC. You do not have a warranty without the validation sticker. Place validation sticker here. Warranty is invalid without sticker. This Limited Warranty does not cover consequential or incidental damages. The Warrantor's total aggregate liability of this Limited Warranty is limited to the Final Sales Price listed on the Application For Warrantyform. The Builder makes no housing merchant implied warranty or any other warranties, express or implied, in connection with the attached sales contract or the warranted Home, and all such warranties are excluded, except as expressly provided in this Limited Warranty. There are no warranties which extend beyond the face of this Limited Warranty. Some states do not allow the exclusion or limitation of incidental or consequential damages by the Builder so all of the limitations or exclusions of this Limited Warranty may not apply to you. For your Limited Warranty to be in effect, you should receive the following documentation: • Limited Warranty #319 - Application For Warranty form #316 (Refer to I.B.3. for applicability)- - Validation Sticker #385- • Insurer: Western Pacific Mutual Insurance Company, A Risk Retention Group 'S, 1996 Harrisburg, PA Rev. 9101 RESIDENTIAL WARRANTY CORPORATION 5300 Derry Street, Harrisburg, PA 17111-3598 (717) 561-4480 TABLE OF CONTENTS Section I. Definitions ............................................1 Section 11. The Limited Warranty ...........................3 Section III. Warranty Standards ..............................7 Section IV. Requesting Warranty Performance .....18 Section V. Addenda ..............................................20 A. Newark, Delaware B. State of New York C. State of Indiana D. HUD (Applicable to VA/FHA financed homes only) E. Maryland Addendum page 319.1 A. Introduction To help you better understand your Limited Warranty, refer- to the following list of definitions which apply in this book. B. Definitions 1. 2. 3. page 319.1 tr1996 Harrisburg, PA Rev_9i01 Administrator Residential Warranty Corporation (RWC) is the Administrator of this Limited Warranty. RWC is neither Warrantor nor Insurer. Appliances and Items of Equipment, including At- tachments and Appurtenances Water heaters, pumps, stoves, refrigerators, com- pactors, garbage disposals, ranges, dishwashers, washers and dryers, bathtubs, sinks, commodes, faucets, light fixtures, switches, outlets, thenno- stats, furnaces and oil tanks, humidifiers, oil purifiers, air conditioning materials, in-house sprin- kler systems and similar items. Application For Warranty The form signed at closing by you, the Purchaser, and your Builder which identifies the location, the Effective Date Of Warranty and the Final Sales Price of the enrolled Horne. If the Builder is par- ticipating in the RWC electronic enrollment process, the Application for Warranty form is elimi- nated. 4. Arbitrator A representative of an independent arbitration ser- vice agreed upon by you, the Purchaser, and the Administrator to determine coverage on an Unre- solved Warranty Issue. 5. Builder The person, corporation, partnership or other entity which participates in the RWC Limited Warranty Program and has obtained this Limited Warranty for you. 6. Building Codes The following codes are acceptable to the Insurer of the Limited Warranty: a. Building Codes (1) CABO l & 2 Family Dwelling Code (2) National Building Code (BOCA) (3) Southern Building Code (SBCCI) (4) Uniform Building Code (ICBO) (5) International Building Code (IBC), (IRC) b. Mechanical Codes (1) CABO l & 2 Family Dwelling Code (2) National Mechanical Code (BOCA) (3) Southern Mechanical Code (SBCCI) (4) Uniform Mechanical Code (ICBO) (5) International Building Code (IBC), (IRC) c. Plumbing Codes (1) CABO 1 & 2 Family Dwelling Code (2) International Plumbing Code (3) National Plumbing Code (BOCA) (4) Southern Plumbing Code (SBCCI) (5) Southern Gas Code (SBCCI) (6) Unifonn Plumbing Code (ICBO) (7) International Building Code (IBC), (IRC) d. Electrical Codes (1) CABO 1 & 2 Family Dwelling Code (2) National Electrical Code (NEC) 7. Consequential Damages All consequential damages including, but not lim- ited to, damage to the Home that is caused by a warranted Defect but is not itself a warranted De- fect and costs of shelter, transportation, food, moving, storage or other incidental expenses related to relocation during repairs. 8. Cooling, Ventilating and Heating Systems All ductwork, refrigerant lines, steam and water pipes, registers, convectors and dampers. 9. Defect A condition of any item warranted by this Limited Warranty which exceeds the allowable tolerance specified in this Limited Warranty. Failure to com- plete construction of the Home or any portion of the Home, in whole or in part, is not considered a De- fect. 10. Effective Date Of Warranty The date coverage begins as specified on the Appli- cation for Warranty form. If the builder is participating in the electronic enrollment process, the effective date is date of closing or occupancy, whichever occurs first.* 11. Electrical Systems All wiring, electrical boxes and connections up to the house side of the meter base. 12. Home The single family dwelling, identified on the Appli- cation For Warranty form, which may be a townhome, condominium or duplex. 13. Insurer Western Pacific Mutual Insurance Company, a Risk Retention Group (WPIC). Located at 1655 Lafayette Street, Suite 200, Denver CO 80218. *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. Phone: 303-388-5688. 14. Limited Warranty The terms and conditions contained in this book including any applicable addenda. 15. Major Structural Defects (MSD) All of the following conditions must be met to con- stitute a Major Structural Defect: a. actual physical damage to one or more of the following specified load-bearing segments of the home; b. causing the failure of the specific major struc- tural components; and c. which affects its load-bearing fiinction to the degree that it materially affects the physical safety of the occupants of the home. Load-bearing components of the home deemed to have MSD potential: (1) roof framing members (rafters and trusses); (2) floor framing members (joists and trusses); (3) bearing walls; (4) columns; (5) lintels (other than lintels supporting ve- neers); (6) girders; (7) load-bearing beams; and (8) foundation systems and footings. Examples of non-load-bearing elements deemed not to have Major Structural Defect potential: (1) non-load-bearing partitions and walls: (2) wall tile or paper, etc.; (3) plaster, laths or drywall; (4) flooring and subflooring material; (5) brick, stucco, stone or veneer; (6) any type of exterior siding; (7) roof shingles, sheathing* and tar paper; (8) heating, cooling, ventilating, plumbing, electrical and mechanical systems; (9) appliances, fixtures or items of equipment; and (10) doors, trim, cabinets, hardware, insulation, paint and stains. 16. Owner See Purchaser. 17. Plumbing Systems All pipes located within the Home and their fittings, including gas supply lines and vent pipes. 18. Purchaser You. The Purchaser includes the first buyer of the warranted Home and any and all subsequent owners who take title within the warranty period. 19. Residence See Home. 20. Sewage Disposal System (Private or Public) This system includes, but is not limited to, all waste, drainage, sewer pipes and lines, cleanouts, tanks, pumps, drainfields and seepage pits, outside and beyond the exterior wall of the Home. 21. Structurally Attached An integral part of the Home being structurally sup- ported by footings, block walls or reinforced concrete and connected to the foundation of the Home. 22. Unresolved Warranty Issue All requests for warranty performance, dernands, disputes, controversies and differences that may arise between the parties to this Limited Warranty that cannot be resolved among the parties. An Unre- solved Warranty Issue may be a disagreement regarding: a. the coverages in this Limited Warranty; b. an action performed or to be performed by any party pursuant to this Limited Warranty; c. the cost to repair or replace any item covered by this Limited Warranty. 23. Warrantor Your Builder in Years 1 and 2; the Insurer in Years 3 through 10 and in Years 1 and 2 if your Builder defaults. 24. Water Supply System (Private or Public) This system includes, but is not limited to, all sup- ply and distribution pipes, fittings, valves, pumps and wells, outside the exterior wall of the Home, which supply water to the Home. page 319.2 ,?N996 Harrisburg, PA *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. Rc%. 910 1 A. Introduction to the Limited Warranty 2 3. 4 5 6 1. 2. 3 4 page 319.3 01996 Hamsburg, PA Rev 9/01 wPlc 9319 This book provides specific details, conditions and limitations of the Limited Warranty including pro- cedures for requesting warranty performance and for binding arbitration, in accordance with the pro- cedures of the Federal Arbitration Act. Additional information may be received by calling RWC at (717) 561-4480. Read this document in its entirety to understand the protection it affords, the exclu- sions applicable to it, the Warranty Standards which determine its interpretations and operation and your responsibilities. This is NOT an insurance policy, a maintenance agreement or a service contract. It is an explanation of what you, the Purchaser, can expect from this Limited Warranty. Appliances and Equipment included in the Home are not warranted under this Limited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are separate from this Limited Warranty. You are responsible for maintenance of your new Home. General and preventative maintenance are required to prolong the life of your new Home. This Limited Warranty is automatically trans- ferred to subsequent Owners during the ten-year term of this Limited Warranty. This Limited Warranty is subject to changes re- quired by various regulating bodies. FHA and VA, as well as some local agencies have mandated the additions noted in the Addenda Section of this Lim- ited Warranty book. Notations throughout indicate where the Addenda apply. B. The Limited Warranty Actions taken to cure Defects will NOT extend the periods of specified coverages in this Limited Warranty. Only warranted elements which are specifically desig- nated in the Warranty Standards are covered by this Limited Warranty. The Warrantor has the choice to repair, replace or pay the reasonable cost to repair or replace war- ranted items which do not meet Warranty Standards and are not excluded in the Limited Warranty. If a warranted MSD occurs during the appropriate coverage period, and is reported as required in Sec- tion IV, the Warrantor will repair, replace or pay you the reasonable cost to repair or replace the war- ranted MSD, limited to actions necessary to restore the MSD to its load-bearing capacity. C. Warranty Coverage ONE YEAR COVERAGE: Your Builder warrants that for a period of one (1) year after the Effective Date Of Warranty, warranted items will function and op- erate as presented in the Warranty Standards of Year 1, Section III.A. Coverage is ONLY available where specific Standards and Actions are repre- sented in this Limited Warranty.* 2. Two YEAR COVERAGE: Your Builder warrants that for a period of two (2) years from the Effective Date Of Warranty, specified portions of the heating, cooling, ventilating, electrical and plumbing sys- tems, as defined in this Limited Warranty, will function and operate as presented in the Warranty Standards of Years 1 and 2 only, Section III.BJ 3. TEN YEAR COVERAGE: Major Structural Defects (MSD) are warranted for ten (10) years from the Effective Date Of Warranty. Your Builder is the Warrantor during Years 1 and 2 of this Limited Warranty and the Insurer is the Warrantor in Years 3 through 10. 4. CONDOMINIUM COVERAGE: This Limited Warranty shall only apply to warranted common elements. Warranted common elements are those portions of the defined electrical, heating, ventilating, cooling, plumbing and structural systems which serve two (2) or more residential units, and are contained wholly within a residential structure. Warranty cov- erage for common elements shall be for the same periods and to the same extent as similar or compa- rable items in individual residential units. Examples of common elements which are covered by this Limited Warranty are hallways, meeting rooms and other spaces wholly within the residential structure designated for the use of two (2) or inore units. Examples of common elements which are not cov- ered under this Limited Warranty are club houses, recreational buildings and facilities, exterior struc- tures, exterior walkways, decks, balconies, arches or any other non-residential structure which is part of the condominium. D. Conditions* 1. 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Limited- j. after Year 1, to, resulting from, or made worse Warranty > by elements of the Home which are constructed (continued) separate from foundation walls or other struc- tural elements of the Home such as, but not limited to, chimneys and concrete floors of basements and attached garages. k. to wiring, to and between communication de- vices from the source of power, whether or not connected to the interior wiring system of the Home. Such devices shall include, but not be limited to, telephone systems, television cable systems, intercom systems, computer systems and security systems. Sources of power shall include, but not be limited to, service entrance conductors, switches, outlets, receptacles and junction boxes. 1. to recreational facilities; driveways; walkways; patios, porches and stoops not structurally at- tached; decks and balconies which are not bolted to or cantilevered from the main struc- ture of the Home; boundary and/or retaining walls; bulkheads; fences; landscaping, sodding, seeding, shrubs, trees and plantings; subsurface drainage systems (other than footer drains); lawn sprinkler systems; off-site improvements, including streets, sidewalks, adjacent property and the like; or any other improvements not part of the Home itself. 2. Loss or damage resulting from, or made worse by: a. changes in the grading of the property sur- rounding the Home by anyone except your Builder or its employees, agents or subcontrac- tors. b. changes in grading caused by erosion. c. modifications or additions to the Home, or property under or around the Horne, made after the Effective Date Of Warranty (other than changes made in order to meet the obligations of this Limited Warranty). page 319.5 C, 1996 Harrisburg. PA Rra. 9/01 WPIC x319 d. intrusion of water into crawl spaces.* e. the weight and/or performance of any type of waterbed or any other furnishing which ex- ceeds the load-bearing design of the Home. f. the presence or consequence of unacceptable levels of radon, formaldehyde, carcinogenic substances or other pollutants and contami- nants; or the presence of hazardous or toxic materials resulting in uninhabitability or health risk within the Home. g. acts or omissions by you, your agents, employ- ees, licensees, invitees; accidents, riots, civil commotion, nuclear hazards, acts of God or na- ture, fire, explosion, blasting, smoke, water escape, windstorms, hail, lightning, ice, snow, falling trees, aircraft, vehicles, flood, mud slides, sinkholes, mine subsidence, faults, crev- ices, earthquake, land shock waves or tremors occurring before, during or after a volcanic eruption. h. your failure to perform routine maintenance. i. your failure to minimize or prevent such loss or damage in a timely manner. j. defects in, but not limited to: recreational fa- cilities; driveways, walkways; patios, porches and stoops not structurally attached; decks and balconies which are not bolted to or cantile- vered from the main structure of the Home; boundary and/or retaining walls; bulkheads; fences; landscaping, sodding, seeding, shrubs, trees and plantings; subsurface drainage sys- tems (other than footer drains); lawn sprinkler systems; off-site improvements, including streets, sidewalks, adjacent property and the like; or any other improvements not part of the Home itself k. defects in detached garages or outbuildings (except those which contain plumbing, electri- cal, heating, cooling or ventilating systems serving the Home, and then only to the extent where Defects would affect these systems). A detached garage is one which is constructed on its own foundation, separate and apart from the foundation of the Home. A breezeway, fence, utility line or similar union shall not cause a garage or outbuilding to be considered at- tached. 1. negligent maintenance or operation of the Home and its systems by anyone other than your Builder or its agents, employees or sub- contractors. in. any portion of a Water Supply System, private or public, including volume and pressure of water flow.* n. quality and potability of water. o. any portion of a Sewage Disposal System, pri- vate or public, including design.* p. dampness, condensation or heat build-up *FHA/VA Homeowners, refer to HUD Addendum. Section V.D. page 319.6 C`1996 Harrisburg. PA Rey.-. 9NI1 3 4 5 6 7 8 9. caused by your failure to maintain proper venti- lation. * Failure of your Builder to complete construction of the Home or any part of the Home on or before the Effective Date Of Warranty or damages arising from such failure. An incomplete item is not con- sidered a Defect, although your Builder may be obligated to complete such items under separate agreements between you and your Builder. Any deficiency which does not result in actual physical damage or loss to the Home. Any Consequential Damages. Personal property damage or bodily injury. Violation of applicable Building Codes or ordi- nances unless such violation results in a Defect which is otherwise covered under this Limited War- ranty. Under such circumstances, the obligation of the Warrantor under this Limited Warranty shall only be to repair the defective warranted portion of the Home, but not to restore or bring the Home to conform to code. Any request for warranty performance submitted to the Administrator after an unreasonable delay or later than 30 days after the expiration of the appli- cable warranty period. Warranted Defects that you repair without prior written authorization of the Administrator. 10. Any damages to, or resulting from a swimming pool whether located within or outside the Home, as a result of its construction, placement, use, equip- ment, maintenance, etc. 11. The removal and/or replacement of items specifi- cally excluded from coverage under this Limited Warranty, such as landscaping or personal property, items not originally installed by your Builder, such as wallpaper, where removal and replacement are required to execute a repair. 12. Any Defect consisting of, caused by, contributed to, or aggravated by moisture, wet or dry rot, mold, mildew, fungus or rust. 13. Sound transmission and sound proofing between rooms or floor levels. 14. Appliances and Equipment included in the Home are not warranted under this Limited Warranty, but may be covered by separate warranties provided by the manufacturer or supplier. These warranties are passed on to you by your Builder at closing and are separate from this Limited Warranty.' F. Limitation of Liability 1. The Warrantor's liability and obligations are lim- ited to the repair, replacement or the payment of the reasonable cost of repair or replacement of war- ranted items not to exceed an aggregate equal to the Final Sales Price of the Home as listed on the Ap- plication for Warranty form or in the absence of an Application for Warranty form, as otherwise pro- vided to the Administrator by the Builder. The choice to repair, replace or make payment is the Warrantor's. 2. All other warranties, express or implied, including, but not limited to, all implied warranties of fitness, merchantability or habitability, are disclaimed and excluded to the extent allowed by law. t Homeowners in the State of New York, refer to State of New York Addendum, Section V.B. zrrrw A I A U... ,. -..C .. .. ill tT nAJ -.-__ r.. .- The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply.' CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 1. FOUNDATIONS BASEMENT 1.1 Cracks appear in No action required. The expansion/contraction joint is placed to control joints. control cracking. This is not a deficiency. 1.2 Pit, depression or areas Builder will correct those areas in In rooms not initially designed as finished of unevenness in areas which Defect exceeds 1/4 in. within living areas or where a floor or a portion of designed for living a 32 in. measurement. a floor surface has been designed for purposes. specific drainage purposes, a slope which exceeds 1/4 in. within a 32 in. measurement is not a deficiency. 1.3 Cracks in poured con- Builder will correct any crack Shrinkage cracks are common and should crete foundation walls. which exceeds 1/8 in. in width. be expected. Surface patching and epoxy injection are examples of acceptable repair methods. 1.4 Cracks in block or Builder will correct cracks which Some cracks are common through masonry veneer wall. exceed 1/4 in. in width. and mortar joints. Cracks 114 in. or less are considered routine Owner maintenance. 1.5 Leaks resulting in Builder will correct. A one-time occurrence may not indicate a actual flow or trickling Defect. Owner must maintain proper of water through wall grading around the Home and maintain any or floor, causing an surface water control systems installed by accumulation. Builder. Dampness and condensation are normal conditions and are not covered by this Limited Warranty. 1.6 Disintegration of the Builder will correct disintegrated Disintegration caused by erosion due to concrete floor surface. surfaces caused by improper salt, chemicals, implements used and other placement of concrete, factors beyond Builder's control is not a warranted deficiency. 1.7 Cracks in concrete floor Builder will correct so Defect is not Minor impressions in floor covering are which rupture or signif- readily noticeable when floor not considered significant imperfections. icantly impair perfor- covering is in place. mance of floor covering. 1.8 Condensation on walls, No action required. Maintaining adequate ventilation and joists, support columns moisture control is considered Owner and other components maintenance. of basement area. CRAWL SPACE 1.9 Cracks in poured con- Builder will correct any crack Surface patching and epoxy injection are crete foundation walls. which exceeds 1/8 in. in width. examples of acceptable repair methods. Shrinkage cracks of 1/8 in. or less are common and should be expected. 1.10 Cracks in block or veneer wall. Builder will correct cracks greater than 1 /4 in. in width. Surface patching and epoxy injection are examples of acceptable repair methods. Shrinkage cracks of 1/4 in. or less are common and should be expected. 1.11 Inadequate ventilation 1.12 Condensation on walls, joists, support columns and other components of the crawl space area. page 319.7 ?t-199e Harrisburg. P.4 Re,. 9101 WNC 1319 Builder will install properly sized louvers or vents- Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. No action required. Maintaining adequate ventilation and moisture control, including seasonal adjustment of vent openings, is considered Owner maintenance. t Homeowners in the State of New York, refer to State of New York Addendum. Section V.B. The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section 11 to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS FOUNDATIONS r SLAB Or GRADE 1.13 Cracks appear at control No action required. Expansion/contraction joint is placed to joints. control cracking. This is not a deficiency. 14 Pits, depressions or areas Builder will correct areas in which of unevenness in areas Defect exceeds 1/4 in. within a 32 in. designed for living measurement. purposes. 1.15 Disintegration of con- Builder will correct disintegrated crete floor surface. surfaces caused by improper placement of concrete. 1.16 Crack in concrete floor which ruptures or signifi- cantly impairs perfor- mance of floor covering. 1.17 Cracks in attached garage slab. Builder will correct so Defect is not readily noticeable when floor covering is in place. Builder will correct cracks which exceed 1/4 in. in width or vertical displacement. 1.18 Cracks in concrete floor Builder will correct cracks which of unfinished area (no exceed 1/4 in. in width or floor covering) or in areas vertical displacement. not designed for living. 1.19 Cracks in visible face of Builder will correct cracks in foundation. excess of 1 /8 in. in width. In rooms not initially designed as finished living areas or where a floor or a portion of a floor surface has been designed for specific drainage purposes, a slope which exceeds 1/4 in. within a 32 in. measurement is acceptable. Disintegration caused by erosion due to salt, chemicals, implements used and other factors beyond Builder's control is not a warranted deficiency. Minor impressions in floor covering are not considered significant imperfections. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. Surface patching and epoxy injections are examples of acceptable repair methods. Shrinkage cracks are common and should be expected. CEILING 2.1 Uneven ceiling. Builder will correct if unevenness Some minor framing imperfections should exceeds 1/4 in. within a 32 in. be expected. measurement. FLOOR 2.2 High and low areas. Builder will correct if high or low Some minor framing imperfections should areas exceed 1/4 in. within a 32 in. be expected. measurement. 2.3 Floor squeaks. Builder will correct if caused by a A squeak-proof floor cannot be guaranteed. defective joist or improperly Lumber shrinkage as well as temperature installed subfloor. and humidity changes may cause squeaks. Ro )F 2.4 Split or warped rafters or No action required. Some splitting and warping is normal and trusses. is caused by high temperature effects on lumber. WALL 2.5 Bow or bulge. Builder will correct if bow or bulge Minor framing imperfections should be exceeds 1/4 in. within 32 in. expected. horizontal or vertical measurement. 2.6 Out-of-plumb. Builder will correct where out-of- Minor framing imperfections should be plumb condition exceeds 3/4 in. expected. within 8 ft. vertical measurement. page 319.8 2.7 Wall is out-of-square. No action required. A wall out-of-square is not a Defect. c 1996 Hamburg. PA Rcv, 9.K11 The following Warranty Standards are applicable only to warranted items stated in Section II of 'this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS O. STRUCTURALLY 3.1 Wood twisting, warping ATTACHED or splitting. WOOD DECKS Builder will correct only if due to improper installation. Twisting, warping or splitting of wood deck material is normal due to exposure to the elements. Owner maintenance is required. 3.2 Settlement. 3.3 Loose railing or post. DOOR 3.4 Binds, sticks or does Builder will correct if caused Seasonal changes may cause doors to not latch. by faulty workmanship or materials. expand and contract, and are usually temporary conditions. 3.5 Wood door panel No action required. Panels will shrink and expand and shrinks. may expose unfinished surfaces. 3.6 Warping. Builder will correct warping which Seasonal changes may cause doors to exceeds 1/4 in., measured vertically, expand and contract, and are usually horizontally or diagonally. temporary conditions. 3.7 Split in panel. Builder will correct if split allows Splits which do not allow the entrance of the entrance of elements. elements are considered normal. Owner maintenance is required. 3.8 Separation between Builder will correct if daylight is Even with properly installed weather door and weather- visible or if enhance of elements stripping, some movement of the door, stripping. occurs under normal conditions. when closed, may be expected. Owner maintenance is required for minor alterations to adjustable thresholds and other parts of the door. 3.9 Screen mesh is torn or Builder will correct only if damage Owner is responsible for establishing a damaged. is documented prior to occupancy. pre-closing walk-through inspection list. 3.10 Overhead garage door Builder will correct garage doors Some entrance of elements can be expected fails to operate or allows which do not fit or operate properly. and is not considered a deficiency. If Owner rain or snow to leak installs a garage door opener, Builder is through. not responsible for operation of door. Builder will correct slope of deck which exceeds a ratio of 2 in. in a 10 ft. measurement. Builder will correct if due to improper installation. Some slope is often provided to allow for water drainage. Owner maintenance is required. ROOFING 3.11 Roof and roof flashing Builder will correct if leak occurs No action is required if leak is due to snow leaks. under normal conditions. or ice build-up, high winds or driving rains. 3.12 Lifted, torn or curled shingles. Builder will correct if due to poor installation. Owner maintenance is required. 3.13 Inadequate ventilation 3.14 Water stays in gutters 3.15 Gutter or downspout leaks. Builder will provide adequate ventilation. Builder will correct to limit standing water depth at 1 in. Builder will correct leaks at connections. Moisture accumulation in attics which are not adequately vented is a deficiency. It is Owner's responsibility to keep existing vents clear of obstructions to promote air flow. Owner is responsible for keeping gutters and downspouts clean. Owner- is responsible for keeping gutters and downspouts clean. Gutters may over- flow during heavy rains. page 319.9 ;U996 Hwisburg. FA Rev. 9/01 WPIC 9319 The following Warranty Standards are applicable only to warranted items stated in Section 11 of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 3. EXTERIOR (CON TNUED) SITE WORK 3.16 Standing water within Builder will correct water which Standing water beyond the 10 ft. perimeter 10 ft. of the foundation. stands for more than 24 hours, or of the foundation is not covered by this more than 48 hours in swales. Limited Warranty. Owner is responsible for establishing and maintaining adequate ground cover. 3.17 Settling of ground If final grading was performed by If settlement does not exceed 6 in., it is around foundation walls, Builder, he will replace fill in Owner's responsibility to fill affected utility trenches or other excessively settled areas only once.* areas. The party responsible for establishing filled areas on property the final grade shall provide for positive where there has been drainage away from foundation. Owner excavation and backfill is responsible for establishing and which affected maintaining adequate ground cover. foundation drainage. STRUCTURALLY 3.18 Settlement, heaving or Builder will correct if movement Stoops, porches and patios which are ATTACHED movement. exceeds 1 in. from the Home for poured separately and simply abut the STOOP, PORCH stoops, porches and patios which are house are not covered by this Limited cot PATIO structurally attached. Warranty. 3.19 Concrete splatters on Builder will correct only if damage Owner is responsible for establishing a adjacent surfaces. is documented prior to occupancy. pre-closing walk-through inspection list. WALL COVERING 3.20 Entrance of elements Builder will correct entrance of Any separations 3/8 in. or less are through separations of elements or separations exceeding considered routine Owner maintenance. siding or trim joints, or 3/8 in. by caulking or other separation between trim methods. and surfaces of masonry or siding. 3.21 Cracks in stucco, cement Builder will correct cracks which Hairline cracks are common. and plaster surfaces. exceed 1/8 in. in width. 3.22 Siding materials Builder will correct affected area Separated, loose or delaminated siding can deteriorate, delaminate if due to improper workmanship also be due to improper maintenance. or come loose. or materials. Wavy siding may be due to temperature changes and can be expected. 3.23 Paint or stain peels Builder will correct. If 75% of a Some fading is normal and is caused by or deteriorates. particular wall is affected, entire weathering. Mildew and fungus on siding wall will be corrected: are caused by climatic conditions and are considered routine maintenance. Varnish or lacquer will deteriorate quickly and is not covered by this Limited Warranty. 3.24 Paint splatters and Builder will correct only if damage Owner is responsible for establishing a smears on other surfaces. is documented prior to occupancy. pre-closing walk-through inspection list. 3.25 Faulty application of Builder will correct affected area. Some minor imperfections such as over- paint on wall and trim If greater than 75% of wall spray, brushmarks, etc., are common and surfaces. or trim piece is affected, entire should be expected. surface will be corrected. 3.26 Knot holes bleed Builder will correct affected areas Knot holes will be apparent depending on through paint or stain. where excessive bleeding of the quality of material used. knots appear. 3.27 Vent or louver leaks. Builder will correct if caused by Properly installed louvers or vents may at improper installation. times allow rain or snow to enter under strong wind conditions and is not a deficiency. page 319.10 e i9N6 H in ;?bur . rn *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. The following Warranty Standards are applicable only to warranted items stated in Section It of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. i CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 3. EXTERIOR (CONTINUTD) WALL COVERING 3.28 Cracks in masonry, Builder will correct cracks which Some cracks are common through masonry (CONTINUED) veneer, stone, etc. exceed 1/4 in. in width. and mortar joints. Cracks 1/4 in. or less are considered routine Owner maintenance. WINDOWS 3.29 Condensation or frost No action required. Condensation is relative to the quality and on interior window type of windows. Temperature differences surface. in high levels of humidity along with indivi- dual living habits will cause condensation. 3.30 Clouding or conden- sation between panes of glass. 3.31 Glass breakage. 3.32 Excessive drafts and leaks. Builder will correct only if damage is documented prior to occupancy. Builder will correct only if damage is documented prior to occupancy. Builder will correct poorly fitted windows. Owner is responsible for establishing a pre-closing walk-through inspection list. 3.33 Difficult to open, close Builder will correct. or lock. Owner is responsible for establishing a pre-closing walk-through inspection list. Relative to the quality and type of windows, some drafts are normally noticeable around windows, especially during high winds. It may be necessary for the Owner to have storm windows installed to provide a satisfactory solution in high wind areas. All caulking materials expand and contract due to temperature variation and dissimilar materials. Maintenance of weather stripping is Owner's responsibility. Windows should open, close and lock with reasonable pressure. DOORS 4.1 Latch is loose or rattles. No action required. Some minor movement should be expected. 4.2 Binds, sticks or does Builder will correct if due to not latch. faulty workmanship and materials. 4.3 Warping. Builder will correct warping which exceeds 1/4 in., measured vertically, horizontally or diagonally. 4.4 Excessive opening at Builder will correct gaps in excess bottom. of 1-1/2 in. between bottom of passage door and finished floor or 2 in. between bottom of closet door and finished floor. 4.5 Rubs on carpet. Builder will correct. Seasonal changes may cause doors to expand and contract, and is usually a temporary condition. Seasonal changes may cause doors to expand and contract, and are usually temporary conditions. Gaps under doors are intended for air flow. Builder is not responsible if Owner installs carpet. page 319.11 1:1996 Harrisburg. PA Rev. 9.'AI - wric" 0319 The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS WALLS, CEILINGS, 4.6 Cracks and separations Builder will correct cracks in excess Minor seam separations and cracks, along SURFACES, FINISHES in drywall, lath or of 1/8 in. in width. Builder will with other slight imperfections, are & TRIM plaster; nail pops. correct nail pops which have broken common and should be expected. Minor finished surface. depressions and slight mounds at nail heads are.not Defects. 4.7 Peeling of wallpaper. Builder will correct if not due to Builder is not responsible for wallpaper Owner neglect or abuses. installed by Purchaser. Owner is respon- sible for maintaining adequate ventilation in areas of high humidity, such as kitchens and bathrooms. 4.8 Separated seams in Builder will correct if wall surface Minor imperfections can be expected. wallpaper. is readily visible. 4.9 Lumps, ridges and nail No action required.. Owner should insure that surface to be pops in wallboard which covered is suitable for installation of wall appear after Owner has covering. wall covering installed by himself or others. 4.10 Surface deficiencies in Builder will correct readily Owner is responsible for establishing a finished woodwork. apparent splits, cracks, hammer pre-closing walk-through inspection list. marks and exposed nail heads, only if documented prior to occupancy. 4.11 Gaps between trim and Builder will correct gaps in excess Some separation due to lumber shrinkage adjacent surfaces, and of 1/8 in. at trim joints and 1/4 in. is normal and should be expected. gaps at trim joints. between trim and adjacent surfaces. 4.12 Cracks in ceramic grout Builder will correct cracks in excess Cracking of grout joints is common and is joints. of 1/8 in. one time only. considered routine Owner maintenance unless excessive. 4.13 Ceramic tile cracks or Builder will correct only if docu- Owner is responsible for establishing a becomes loose. mented prior to occupancy. pre-closing walk-through inspection list. 4.14 Cracking or deterioration No action required. All interior caulking shrinks and deterior- of caulking. ates. Owner maintenance is required. 4.15 Wall or trim surfaces Builder will correct affected area. Solve minor imperfections such as over- visible through paint. If greater than 75% of wall, trim spray, brushmarks, etc., are common and piece, or ceiling is affected, entire should be expected. surface will be corrected. page 319.12 r1996 Harrisburg. PA Rev. 9/01 WPIC #319 The following Warranty Standards are applicable only to warranted items stated in Section 11 of tl)is Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS • O• FLOOR COVERING* 4.16 Resilient flooring comes Builder will correct. Owner maintenance is required. loose at edge. 4.17 Fades, stains or discolors. 4.18 Premature wearing of carpet. 4.19 Visible gaps at carpet seams. 4.20 Carpet becomes loose or buckles. 4.21 Gaps at seams of resilient flooring. 4.22 Fastener pops through resilient flooring. 4.23 Depressions or ridges in resilient flooring at seams of sub-flooring. 4.24 Cuts and gouges in any floor covering. 4.25 Hollow sounding marble or tile. Builder will correct stains or spots Fading is not a deficiency. Owner is only if documented prior to responsible for establishing a pre-closing occupancy. walk-through inspection list. No action required. Excessive wear in high-traffic areas such as entryways and hallways is normal. Wearability is directly related to quality of carpet. Builder will correct gaps. Seams will be apparent. Owner maintenance is required. Builder will correct. Some stretching is normal. Owner should exercise care in moving furniture. Builder will correct gaps of similar Minor gaps should be expected. materials in excess of 1/8 in., and 3/16 in. where dissimilar materials abut. Builder will correct where fastener has broken through floor covering. Sharp objects such as high heels, table and chair legs, can cause similar problems, and are not covered by this Limited Warranty. Builder will correct depressions or ridges which exceed 1/8 in. in height or depth. Builder will correct only if documented prior to occupancy No action required. This is determined by placing a 6 in. straight edge over ridge or depression, with 3 in. on either side, and measuring height or depth at sub-flooring seam. Owner is responsible for establishing a pre-closing walk-through inspection list. Hollow sounding marble or tile is not a deficiency of construction and is not covered under this warranty. Sua-FLOORING 4.26 Loose sub-flooring. Builder will correct if due to a Lumber shrinkage as well as temperature defective joist or improper fastening. and humidity changes may cause loose sub-flooring. page 319.13 01996 Harrisburg. PA *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. Re,. 9101 WPIC 4.119 The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 5. MECHANICAL ELECTRICAL 5.1 Circuit breakers trip Builder will correct if tripping Ground Fault Circuit Interrupters (GFCI) excessively. occurs under normal usage. are intended to trip as a safety factor. 5.2 Outlets, switches or Builder will correct if caused by Owner should exercise routine care and fixtures malfunction. defective workmanship or maintenance. Replacement of light bulbs materials. is Owner's responsibility. HEATING & COOLING 5.3 Condensation lines clog No action required. Condensation lines will clog under normal under normal use. conditions. Continued operation of drain line requires Owner maintenance. 5.4 Noisy duct work. Builder will correct oil canning noise if caused by improper installation. When metal heats and cools, ticking and cracking may occur and are not covered by this Limited Warranty. 5.5 Insufficient heating. 5.6 Insufficient cooling. 5.7 Refrigerant line leaks. Builder will correct if heating system cannot maintain a 70 degree Fahrenheit temperature, under normal operating and weather conditions. Temperature shall be measured at a point 5 ft. above center of floor in affected area. On extremely cold days, a 6 degree difference between actual inside temperature and thermo- stat setting is acceptable. All rooms may vary in temperature by as much as 4 degrees. Builder will correct if cooling system cannot maintain a 78 degree Fahrenheit temperature, under normal operating and weather conditions. Temperature shall be measured at a point 5 ft. above center of the floor in the affected room. On excessively hot days, where outside temperature exceeds 95 degrees Fahrenheit, a difference of 17 degrees from outside temperature will be difficult to maintain. All rooms may vary in temperature by as much as 4 degrees. Builder will correct. Orientation of the Home, location of rooms and location of vents will also provide a temperature differential. There may be periods when outdoor temperature falls below design temperature thereby lowering temperature in the Home. Certain aspects of the Home including, but not limited to, expansive stairways, open foyers, sunrooms or cathedral ceilings may cause abnormal variation from these Standards and are not covered by this Limited Warranty. Orientation of the Home, location of rooms and location of vents will also provide a temperature differential. There may be periods when outdoor temperature rises above design temperature thereby raising temperature in the Home. Certain aspects of the Home including, but not limited to, expansive stairways, open foyers, sunrooms or cathedral ceilings may cause abnormal variation from these Standards and are not covered by this Limited Warranty. Owner maintenance is required on the system. PLUMBING* 5.8 Pipe freezes and bursts. Builder will correct if due to Proper winterization of pipes is considered faulty workmanship or materials. routine maintenance and Owner should maintain suitable temperatures inside the Home. 5.9 Noisy water pipe Builder will correct hammering noise if caused by improper installation. Some noise can be expected due to flow of water and pipe expansion. This is not a Defect_ 5.10 Plumbing fixtures, appliances and trim fittings leak or malfunction. Builder will correct if due to faulty workmanship and materials. Owner maintenance is required. Scratches, tarnishing or marring must be noted on a pre-closing walk-through inspection list. page 319.14 ,09% Harrisburg- PA *FHA/VA Homeowners, refer to HUD Addendum, Section V.D. Rec. 9101 WPIC #314 The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS 6. SPECIALTIES BATHROOM I 6.1 Cabinet separates from & KITCHEN wall or ceiling. 6.2 Crack in door panel. 6.3 Warping of cabinet door or drawer front. Builder will correct separation in excess of 1/4 in. Builder will correct only if documented prior to occupancy. Builder will correct if warp exceeds 3/8 in. as measured from cabinet frame. Some separation is normal. Caulking is an acceptable method of repair. Owner is responsible for establishing a pre-closing walk-through inspection list. Seasonal changes may cause warping and may be a temporary condition. 6.4 Doors or drawers do not operate. 6.5 Chips, cracks, scratches on countertop, cabinet fixture, fitting or appliance. 6.6 Delamination of countertop or cabinet. 6.7 Cracks or chips in fixture. 6.8 Defective fixture, fitting or appliance. Builder will correct. Builder will correct only if documented prior to occupancy Builder will correct only if documented prior to occupancy Builder will correct only if documented prior to occupancy Builder will correct. Owner maintenance is required. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner is responsible for establishing a pre-closing walk-through inspection list. Owner maintenance is required. CHIMNEY 6.9 Exterior and interior Builder will correct cracks in & FIREPLACE masonry veneer cracks. excess of 1/4 in. in width. 6.10 Firebox color is changed; No action required. accumulation of residue in chimney or flue. 6.11 Chimney separates from Builder will correct separation in the Home. excess of 1/2 in. within 10 ft. 6.12 Smoke in living area 6.13 Water infiltration into firebox from flue. 6.14 Firebrick or mortar joint cracks. Builder will correct if caused by improper construction or inadequate clearance. No action required. No action required. Some cracks are common in masonry and mortar joints. Cracks 1 /4 in. in width or less are considered Owner maintenance. Owner maintenance is required. Newly built chimneys will often incur slight amounts of separation. Temporary negative draft situations can be caused by high winds; obstructions such as tree branches too close to the chimney; the geographic location of the fireplace; or its relationship to adjoining walls and roof. In some cases, it may be necessary to open a window to create an effective draft. Since negative draft conditions could be temp- orary, it is necessary that Owner substan- tiate problem to Builder by constructing a fire so the condition can be observed. A certain amount of rainwater can be expected under certain conditions. Intense heat may cause cracking. INSULATION 6.15 Air infiltration around No action required. Air flow around electrical boxes is electrical receptacles. normal and is not a deficiency. page 319.15 C•1996 Humisburg, PA Rc". 9,n1 wpic.4.319 The following Warranty Standards are applicable only to warranted items stated in Section II of this Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED COMMENTS B. SYSTEMS - YEARS 1 AND 2 ELECTRICAL B.1 Wiring fails to carry Builder will correct if failure is due Switches, outlets and fixtures are applicable specified load. to improper installation or materials. to Year 1 Coverage Only. HEATING B.2 Duct work separates. Builder will correct. & COOLING Owner maintenance is required. PLUMBING B.3 Pipe leaks. Builder will correct. Condensation on pipes does not constitute leakage. Faulty faucets, valves, joints and fittings are applicable to Year 1 Coverage Only. B.4 Water supply stops. Builder will correct if due to faulty workmanship or materials inside the Home. Drought or causes other than faulty workmanship and materials will not be covered under this Limited Warranty. B.5 Clogged drain or sewer Builder will correct clog within structure caused by faulty workmanship or materials. Clogs and stoppages beyond the exterior wall are not covered by this Limited Warranty. Routine Owner maintenance and proper use is required. page 319.16 0,1996 Harrisburg, PA Rev. 9/01 WPIC #319 The fotio-wing Warranty Standards are applicable only to warranted items stated in Section lI of t6it Limited Warranty. Read Section II to determine if the following Warranty Standards apply. CATEGORY OBSERVATION ACTION REQUIRED MAJOR STRUCTURAL DEFECTS COMMENTS C.1 Major Structural Defects. The criteria for establishing the existence of a Major Structural Defect is set forth in Section I.B.15 of this Limited Warranty Agreement. The Warrantor will correct Major Structural Defects, limited to such actions as are necessary to restore the load-bearing capability of the component(s) affected by a Major Structural Defect. page 319.17 V996 Harrisburg. PA Rea,. 9/01 WPIC 4319 page 319.18 V.-1996 Harrisburg. PA Re'. 9/01 WPIC #319 A. Notice to Warrantor in Years 1 & 2 1. If a Defect occurs in Years I and 2, you must notify your Builder in writing. Your request for warranty per- formance should clearly describe the Defect(s) in reasonable detail. D. 2. 3 4. B. Request for warranty performance to your Builder does not constitute notice to the Administrator, and it will not extend applicable coverage periods. You must provide the Warrantor with reasonable weekday access during normal business hours in order to perform its obligations. If a request for warranty performance to your Builder does not result in satisfactory action within a reason- able time, written notice must be given to RWC, Administrator, 5300 Derry Street, Harrisburg, Pennsyl- vania 17111-3598, Attn: Warranty Resolution Department. This notice should describe each item in reasonable detail and should be forwarded by certified mail, return receipt requested. Please note that a written request for warranty perfor- mance must be mailed to RWC and postmarked no later than thirty (30) days after the expiration of the applicable warranty period. For example, if the item is one which is warranted by your Builder during your second year of coverage, a request for warranty per- formance must be mailed to RWC and postmarked no later than thirty (30) days after the end of the second year to be valid. Notice to Warrantor in Years 3-10 If a Defect related to a warranted MSD occurs in Years 3 through 10 of this Limited Warranty, you must notify the Administrator to review the item. All such notices must be presented in writing to RWC, Administrator, 5300 Derry Street, Harrisburg, Pennsylvania 17111- 3598, Attn: Warranty Resolution Department, by certified mail, return receipt requested, within a rea- sonable time after the situation arises. Any such notice should describe the condition of the MSD in reason- able detail. Requests for warranty performance postmarked more than thirty (30) days after the expira- tion of the term of this Limited Warranty will not be honored. C. Purchaser's Obligations 1. Your notice to the Administrator must contain the following information: a. Enrollment # and Effective Date Of Warranty; b. Your Builder's name and address; c. Your name, address and phone number (including home and work numbers); d. Reasonably specific description of the ,warranty item(s) to be reviewed; e. A copy of any written notice to your Builder. f. Photograph(s) may be required. 2. You have an obligation to cooperate with the Administrator's mediation, inspection and investiga- tion of your warranty request. From time to time, the Administrator may request information from you re- garding an alleged defect. Failure by you or your appointed representative to respond with the requested information within thirty (30) days of the date of the Administrator's request can result in the closing of your warranty file. Mediation and Inspection Within thirty (30) days following the Administrator's receipt of proper notice of request for warranty performance, the Ad- ministrator may review and mediate your request by communicating with you, your Builder and any other indi- viduals or entities who the Administrator believes possess relevant information. If, after thirty (30) days, the Administra- tor has not been able to successfully mediate your request, or at any earlier time when the Administrator believes that your Builder and you are at an impasse, then the Administrator will notify you that your request has become an Unresolved War- ranty Issue. At any time following the receipt of proper notice of your request for warranty performance, the Administrator may schedule an inspection of the item. You must provide the Administrator reasonable access for any such inspection as discussed in Section IV.E.2. The Administrator, at its discre- tion, may schedule a subsequent inspection to determine Builder compliance. When a request for warranty performance is filed and the deficiency cannot be observed under normal conditions, it is your responsibility to substantiate that the need for warranty performance exists including any cost involved. If properly substantiated, you will be reimbursed by the Warrantor. E. Arbitration 1. You begin the arbitration process by giving the Ad- ministrator written notice of your request for arbitration of an Unresolved Warranty Issue. Within twenty (20) days after the Administrator's receipt of your notice of request for arbitration, any Unresolved Warranty Issue that you have with the Warrantor shall be submitted to an independent arbitration service upon which you and the Administrator agree. This binding arbitration is governed by the procedures of the Federal Arbitration Act, 9 U.S.C. 1 et. seq. If you submit a request for arbitration, you must pay the arbitration fees before the matter is sub-mitted to the arbitration service. After arbitration, the Arbitrator shall have the power to award the cost of this fee to any party or to split it among the parties to the arbitration. The arbitration shall be conducted in accordance with this Limited Warranty and the arbitration rules and regulations to the extent that they are not in conflict with the Federal Arbitration Act. Within one (1) year after an arbitration award, either party may apply to the U.S. District Court where the Home is situated to confirm the award. The Admini- strator's receipt of a written request for arbitration in appropriate form shall stop the running of any statute of limitations applicable to the matter to be arbitrated until the Arbitrator renders a decision. The decision of the Arbitrator shall be final and binding upon all par- ties.! Since this Limited Warranty provides for mandatory binding arbitration of Unresolved Warranty Issues, if any party commences litigation in violation of this t Homeowners in the State of New York, refer to State of New York Addendum, Section V.B. page 319.19 'O1996 Harrisburg. PA Rev. 9/01 wPIC #319 Limited Warranty, such party shall reimburse the other parties to the litigation for their costs and expenses, including attorney fees, incurred in seeking dismissal of such litigation.* In Years 1 & 2, the Builder shall have sixty (60) days from the date the Administrator sends the Ar-bitrator's award to the Builder to comply with the Arbitrator's decision. In Years 3-10, the Warrantor shall have sixty (60) days from the date the Administrator receives the Arbitrator's award to comply with the Arbitrator's de- cision. Warranty compliance will begin as soon as possible and will be completed within the sixty-day compliance period with the exception of any repair that would reasonably take more than sixty (60) days to complete, including, but not limited to, repair de- layed or prolonged by inclement weather. The Warrantor will complete such repair or replacement as soon as possible without incurring overtime or week- end expenses. You may request a compliance arbitration within twenty (20) days after the sixty-day compliance period has expired by giving the Administrator written notice of your request. You must pay the fees for the compli- ance arbitration prior to the matter being submitted to the arbitration service. 2. You must provide the Warrantor with reasonable weekday access during normal business hours in order to perform its obligations. Failure by you to provide such access to the Warrantor may relieve the Warran- tor of its obligations under this Limited Warranty. If your Builder does not fulfill its obligations under this Limited Warranty, the Admini- strator will process the request for warranty performance as described in this Limited Warranty and subject to the provisions in Sec- tion IV.F. F. Conditions of Warranty Performance 1. When your request for warranty performance is deter- mined to be a warranted issue, the Warrantor reserves the right to repair or replace the warranted item, or to pay you the reasonable cost of repair or replacement. 2. In Years I and 2, if your Builder defaults in its war- ranty obligations, the Administrator will process the request for warranty performance provided you pay a warranty service fee of $250 for each request prior to repair or replacement.*** 3 4. 5 In Years 3 through 10 you must pay the Administrator a warranty service fee of $500 for each request.**' If the Administrator elects to award you cash rather than repair or replace a warranted item, the warranty service fee will be subtracted from the cash payment. If the Warrantor pays the reasonable cost of repairing a warranted item, the payment shall be made to you and to any mortgagee or mortgagee's successor as each of your interests may appear; provided that the mortgagee has notified the Administrator in writing of its security in- terest in the Home prior to such payment. Warrantor shall not have any obligation to make payment jointly to the Purchaser and mortgagee where the mortgagee has not notified your Builder or the Administrat of its security interest in the Home prior to such pay- ment. Any mortgagee shall be completely bound by any mediation or arbitration relating to a request for war- ranty performance between you and the Warrantor.* 6. Prior to payment for the reasonable cost of repair or replacement of warranted items, you must sign and de- liver to the Builder or the Administrator, as applicable, a full and unconditional release, in recordable form, of all legal obligations with respect to the warranted De- fects and any conditions arising from the warranted items. 7. Upon completion of repair or replacement of a war- ranted Defect, you must sign and deliver to the Builder or the Administrator, as applicable, a full and uncondi- tional release, in recordable form, of all legal obligations with respect to the Defect and any condi- tions arising from the situation. The repaired or replaced warranted item will continue to be warranted by this Limited Warranty for the remainder of the ap- plicable period of coverage. 8. If the Warrantor repairs, replaces or pays you the rea- sonable cost to repair or replace a warranted item, the Warrantor shall be subrogated to all your rights of re- covery against any person or entity. You mast execute and deliver any and all instruments and papers and take any and all other actions necessary to secure such rights, including, but not limited to, assignment of pro- ceeds of any insurance or other warranties to the Warrantor. You shall do nothing to prejudice these rights of subrogation. 9. Any Warrantor obligation is conditioned upon your proper maintenance of the Home, common elements and grounds to prevent damage due to neglect, abnor- mal use or improper maintenance. 10. Condominium Procedures: a. In the case of common elements of a condo- minium, at all times, owner(s) of each unit affected by the common elements in need of war- ranty performance shall each be responsible to pay the warranty service fee ($250 in Years 1 and 2, $500 in Years 3 through 10) for each request for warranty performance.** b. If a request for warranty performance under this Limited Warranty involves a common element in a condominium, the request may be made only by an authorized representative of the condominium association. If the Builder retains a voting interest in the association of more than 50%, the request may be made by unit owners representing 10% of the voting interests in the association. c. If a request for warranty perfonnance under this Limited Warranty involves a common element af- fecting multiple units, and all affected units are not warranted by the RWC Warranty Program, the Insurer's liability shall be limited to only those units warranted by the RWC Warranty. The limit of liability shall be prorated based upon the num- ber of units warranted by this Limited Warranty. *FHANA Homeowners, refer to HUD Addendum, Section V.D. or in writing *Homeowners in Maryland, refer to Maryland Addendum, Section V.E. *Homeowners in Newark, Delaware, refer to Newark, Delaware, Addendum. Section VA page 3]9.20 gr1996 Harrisburg. PA Rea. 9101 WFIC 4319 A. Newark, Delaware, Addendum The warranty service fee as described in Sections IV.F.2 and IV.F.3 will be waived for homes built in the city of Newark, Delaware. B. State of New York Addendum 2. 3 Except as expressly provided in this Addendum, the warranties and rights listed herein are in addition to, and are not exclusive of, any warranties or rights listed in this Limited Warranty. Appliances and Items of Equipment - Subject to other terms and conditions listed in this Limited Warranty, the exclusion concerning deficiencies in Appliances and Items of Equipment described in Section II.E.14 of this Limited Warranty shall not apply during the first two (2) years of the warranty term wherever (i) such appliances and items of equipment are components of the cooling, ventilat- ing, heating, electrical or plumbing systems; and (ii) the deficiencies in such fixtures, appliances or items of equipment are the result of defective installation by your Builder. Standards - Section III- If the statutes of the State of New York provide greater coverage than the provisions of this Limited Warranty, those pro- visions shall modify the warranty to allow for the greater coverage. Alternative Dispute Resolution - When making a request for warranty performance pursuant to Sec- tion IV.E. of this Limited Warranty, you have no obligation to submit to binding arbitration, nor do you have to pay any fee or charge for participation in non-binding arbitration or any mediation process concerning your request. However, any Unresolved Warranty Issues must be submitted to arbitration before a legal proceeding may be commenced. Fur- ther, if an Owner resorts to litigation, the rights and obligations imposed by Section IV.E shall apply to such litigation. C. State of Indiana Addendum written warranty, whichever is less. 2. YEARS 3 AND 4 COVERAGE ONLY - During the third and fourth year following the Effective Date Of Warranty as specified on the Application For War- ranty form, and subject to the terms and conditions listed in this Limited Warranty, your home will be free from Defects caused by poor workmanship and materials in its roof and roof systems. D. HUD Addendum (Applicable to VA/FHA Financed Homes only) 2 3 The warranties and rights listed above are in addition to, and are not exclusive of, any warranties listed in this book. Notwithstanding anything contained in the attached printed form of the RWC Limited Warranty, this Limited Warranty shall include the following protection per Sec- tion II.C, and is amended to read as follows: Two YEAR COVERAGE - Commencing on the Ef- fective Date of this Limited Warranty as specified on the Application For Warranty form, and subject to the terms and conditions listed herein, your Builder warrants that for a period of two (2) years your Home will be free from Defects due to non- conformity with the Warranty Standards set forth in Section III of this Limited Warranty. With respect to fixtures, appliances and items of equipment, the Warranty is for one (1) year or the manufacturer's Section I.B.12 Effective Date Of Warranty - The following language is substituted: The Effec- tive Date Of Warranty will be the date on which closing or settlement occurs in connection with the initial sale of the Home. In no event will the Effec- tive Date Of Warranty be later than the date of FHA endorsement of your Mortgage on the Home. Section I.B.15 Major Structural Defects - The following language is substituted for a.c.: A Major Structural Defect is actual physical damage to the designated load-bearing portions of a home caused by failure of such load-bearing functions to the ex- tent that the home becomes unsafe, unsanitary, or otherwise unlivable. The following language is added: Delamination or rupture of roof sheathing shall be deemed a Major Structural Defect in need of warranty performance. Section II.C.1 One Year Coverage - The follow- ing language is added: Notwithstanding anything to the contrary contained in this Limited Warranty, during the first year of coverage, your Builder will repair or restore the reliable function of Appliances and Equipment damaged during installation or im- properly installed by your Builder. In addition, your Builder will correct Construction Deficiencies in workmanship and materials resulting from the fail- ure of the Home to comply with standards of quality as measured by acceptable trade practices. Construction Deficiencies are Defects (not of a structural nature) in the Home that are attributable to poor workmanship or to the use of inferior mate- rials which result in the impaired fi?nctioning of the Home or some part of the Horne. Defects resulting from your abuse or from normal wear and tear are not considered Construction Deficiencies. Section II.C.4 Condominium Coverage-The fol- lowing language is substituted: The Limited Warranty shall only apply to warranted common elements which are those portions of the defined electrical, heating, ventilating, cooling, plumbing and structural systems which serve two (2) or more residential units and are contained wholly within a residential structure that, if defective, would consti- tute a health or safety condition for the occupants. Examples of common elements which are covered by this Limited Warranty are hallways, meetings rooms, stairwells and other spaces wholly within the resi- dential structure serving two (2) or more units: and page 319.21 iC-1996 Harrisburg. PA Rev. 9101 WPIC 9319 structurally attached balconies, arches and decks. Examples of common elements which are not cov- ered under this Limited Warranty are club houses, recreational buildings and facilities, walkways, exte- rior structures, or any other non-residential structure which is part of the condominium. 5. Section II.C - The following coverage is added for the State of Colorado ONLY: The builder's war- ranty for basement slabs in the State of Colorado is extended from the first through the fourth year. 6. Section II.D - The following statement is added: This agreement is non-cancelable by the Warrantor. 7. Section II.D.9 is deleted. 8 9 10 11 12. 13. 14. Section II.E.Ld - The following language is sub- stituted: Loss or damage caused by soil movement, including subsidence, expansion or lateral move- ment of the soil which is covered by any other insurance or for which compensation is granted by state legislation. Section II.E.Le-the following language is substi- tuted: resulting directly or indirectly from flood, waves, tidal water, overflow of a body of water, or spray from any of these (whether or not driven by wind), water which backs up from sewers or drains, changes in the water table which were not reason- ably foreseeable, wetlands, springs or aquifers. Surface water and underground water which cause an unforeseeable hydrostatic condition with result- ant damage to the structure are covered. Section II.E.2.d is deleted. Section II.E.2.m - The following language is sub- stituted: any portion of a public Water Supply System, including volume and pressure of water flow. Section II.E.2.o - The following language is sub- stituted: any portion of a public Sewage Disposal System, including design. Section II.E.2.p. - exclusion is deleted. Section II.E.5-The following language is substi- tuted: Consequential Damages to personal property are excluded: Consequential Damages to real prop- erty as a result of a defect or repair of a defect are covered. 15. Section III.A a. SITE WORK - The following language is sub- stituted: (1) 3.17 (Action Required) If final grading was performed by the Builder, he will replace fill in excessively settled areas. b. FLOOR COVERING - The following language is added: (1) 4.26 (Observation) Gaps or cracks between finished floor boards. (Action Required) Builder will correct gaps or cracks which ex- ceed 1/8 in. in width. (Comments) Finished wood floors expand and contract due to humid- ity changes in your home. Cracks and gaps which shrink and disappear in non-heating sea- sons are considered normal. (2) 4.27 (Observation) Cupping, crowning or loose finished floor boards. (Action Required) Builder will correct only if caused by a defect in installation. (Comments) Finished wood flooring cups from gaining or losing moisture on one side faster than the other. Some cupping and crowning should be considered normal due to growth rings in the tree and the part of the tree used. The Builder is not responsible for natural properties of the product, or for cli- matic conditions and personal living habits which can affect moisture content of floor boards. Cupping or crowning action may have loosened nails or adhesive. Owner is respon- sible if condition is caused by conditions beyond Builder's control. (3) 4.28 (Observation) Ceramic tile cracks or loos- ens. (Action Required) Builder will correct only if documented prior to occupancy. (Comments) Owner is responsible for establishing a pre-clos- ing walk-through inspection list. C. PLUMBING - The following language is added: 5.11 (Observation) Septic system fails. (Ac- tion Required) Builder will correct if damage is due to poor workmanship or materials, which are not in conformance with Sewage Enforce- ment Officer's instructions as per design and installation only. (Comments) Builder is re- quired to abide by state or local requirements for the installation of on-site sewage disposal system. Any deficiency or failure which occurs or is caused by a condition other than faulty workmanship or materials, such as design, is not covered by this Limited Warranty. Owner is responsible for routine maintenance of sys tem, which may include, but not be limited to: pumping the septic tank; adding chlorine to a chlorinator; and refraining from driving or parking vehicles or equipment on the system. Damages caused by freezing, soil saturation, underground springs, water run-off, excessive use and an increase in level of water table are among causes not covered by this Limited Warranty. 16. Section III.B.6-The following language is added: (Observation) Septic system fails. (Action Re- quired) Builder will correct if damage is due to poor workmanship or materials, which are not in confonmance with Sewage Enforcement Officer's instructions as per design and installation only. (Comments) Builder is required to abide by state or local requirements for the installation of on-site sewage disposal system. Any deficiency or failure which occurs or is caused by a condition other than faulty workmanship or materials, such as design, is not covered by this Limited Warranty. Owner is responsible for routine maintenance of system, which may include, but not be limited to: pumping the septic tank; adding chlorine to a chlorinator; and 17 18 refraining from driving of parking vehicles or equipment on the system. Damages caused by freezing, soil saturation, underground springs, water run-off, excessive use and an increase in level of water table are among causes not covered by this Limited Warranty. Section IV.E.1 Arbitration - Because HUD does not require binding arbitration, the following is de- leted: Since this Limited Warranty provides for mandatory binding arbitration of disputes, if any party commences litigation in violation of this Lim- ited Warranty, such party shall reimburse the other parties to the litigation for their costs and expenses, including attorney fees, incurred in seeking dis- missal of such litigation. Section IV.F.2, F.3, and F.10.a - The following language is substituted: In the first two (2) years, if your Builder does not fulfill its obligations under this Limited Warranty, the Insurer will be respon- sible for your Builder's obligations, subject to a one-time warranty service fee of $250. The Insurer's liability in Years 3 through 10 under this Limited Warranty is subject to a warranty service fee of $250 per request for warranty performance. In each instance, you must pay the fee. prior to the Insurer's repair or replacement. In the event of pay- ment, the fee will be subtracted from the cash payment. In the case of the common elements of a condominium, the warranty service fee shall be $250 per home affected by each common element in need of service, limited to a maximum of $5,000 per free standing structure. 19. Section IV.F.5 - The following language is added: Where a warranted Defect is determined to exist and where the Warrantor elects to pay the rea- sonable cost of repair or replacement in lieu of perfonning such repair or replacement, the cash offer must be in writing. You will be given two (2) weeks to respond. Cash offers over $5,000 are subject to an on- site review by a HUD approved fee inspector (inspection costs will be paid by the Warrantor) un- less: a. the cash offer is made pursuant to a binding bid by an independent third party contractor, which will accept an award of a contract from you pursuant to such bid; b. payment is being made in settlement of legal action; c. you are represented by legal counsel. E. Maryland Addendum You should contact the Administrator personally to verify the existence of your Warranty. Further, you should report any Warranty problems, which are not promptly resolved by your Builder, to the Adminis- trator. 1. Section IV.F.2 and IV.F.3 are not applicable for the state of Maryland. RESIDENTIAL WARRANTY CORPORATION 1,1996 HaTTMUTg. PA Rev. 9/01 wPIC x] 19 E?7IBIT October 9, 2006 Samuel L. Andes Attorney At Law P.O. 168 525 North Twelfth Street Lemoyne, PA 17043 RE: Kelly Litigation Dear Mr. Andes, Enclosed please find our signed Petition to Compel Arbitration as requested. We will look forward to hearing from you with further information as it relates to this matter. Sincerely, Home Designs nli ' ed, LLC Denise P. Thompson Cc: File P.O. Box 387, New Kingstown, PA 17072.Office 717-960-0295 • Fax 717-960-9744 HDU @ HomeDesignsUnlimited.com ?, r-..a -- ? --? f,__ c.?'y r--, ?::- - °t w ty? _._ ? y.,.+ -?? 'T?1 -n ; ;-; .,J ??s? ??'i __? ,.? s? "'? BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs VS. HOME DESIGNS UNLIMITED, LLC., Defendant OCT I IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2006-3245 CIVIL TERM RULE TO SHOW CAUSE A%% Y AND NOW this 10 day of 0 (-Vo\a e..r , 2006, upon consideration of Defendant's Petition to Compel Arbitration, a Rule is hereby issued upon the Plaintiffs, to show cause, if any they have, why this matter should not be submitted to arbitration in accordance with said Petition. The Rule shall be served upon Plaintiffs' counsel of record and is returnable Z.? days from date of service. BY THE COURT, Distribution: ,fames D. Bogar, Esquire (Attorney for Plaintiff) 1 West Main Street, Shiremanstown, PA 17011 .Samuel L. Andes, Esquire (Attorney for Defendant) P.O. Box 168, Lemoyne, PA 17043 f I Z • II tiv OZ 130 40DZ 3a JO 301±0-031H BERNARD V. KELLY, JR., and ) IN THE COURT OF COMMON MICHELE A. KELLY, ) PLEAS OF CUMBERLAND Plaintiffs ) COUNTY, PENNSYLVANIA vs. ) CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC., ) NO. 2006-3245 CIVIL TERM Defendant ) PRAECIPE TO THE PROTHONOTARY: Please withdraw the Preliminary Objections previously filed in this matter on behalf of the Defendant. Samu L. Andes, squire Attorney for Defendant Supreme Court ID # 17225 525 North 12`h Street P.O. Box 168 Lemoyne, PA 17043 (717) 761-5361 C7 C D 17 Y, C-) Y' CO BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs vs. HOME DESIGNS UNLIMITED, LLC., Defendant NOTICE TO PLAINTIFFS NAMED HEREIN: IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2006-3245 CIVIL TERM YOU ARE HEREBY NOTIFIED TO RESPOND TO THE ENCLOSED ANSWER AND NEW MATTER WITHIN TWENTY (20) DAYS FROM SERVICE HEREOF OR A DEFAULT JUDGMENT MAY BE ENTERED AGAINST YOU. Date: 3 4)4 a w"t ? L 0 Samuel L. An es Attorney for Defendant Supreme Court ID 17225 525 North 12th Street Lemoyne, PA 17043 (717) 761-5361 BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs vs. HOME DESIGNS UNLIMITED, LLC., Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW NO. 2006-3245 CIVIL TERM ANSWER AND NEW MATTER OF DEFENDANT HOME DESIGNS UNLIMITED, LLC. AND NOW comes the above-named Defendant, by its attorney, Samuel L. Andes, and makes the following Answer, with New Matter, to Plaintiffs' Complaint: 1. Admitted. 2. Admitted. 3. Admitted. However, by way of further answer, Defendant states that, at the time the parties entered into the agreement, they discussed a warranty program offered by Residential Warranty Corporation (hereinafter "RWC") which the Plaintiffs later accepted. Defendant incorporates herein by reference the averments set out in its New Matter. 4. Admitted. However, by way of further answer, the same paragraph provides: ...... Contractor agrees to provide Buyer with the list of warrantable and non-warrantable items. The Contractor makes, and there exists; no other warranties, written or implied, concerning the contract work or any other subject matter of this agreement." Defendant incorporates herein by reference the averments set out in its New Matter. 5. Denied. Plaintiffs complained about water problems on their lot which were not caused by any of Defendant's work and were not subject to the terms of the contract between the parties. Simply put, Defendant was not obligated to solve water drainage problems on the lot by its contract with Plaintiffs. 6. Defendant admits that Plaintiffs contacted Defendant repeatedly to complain about the water problem on their lot, but that those complaints were not made until after the final inspection of the property by the Plaintiffs. Defendant denies it had any obligation to correct that problem. 7. Denied as stated. Although not obligated to take any corrective action for the water problem on Plaintiffs' lot, Defendant organized meetings with Plaintiffs and their representatives and representatives of the developer responsible for the water problem in an effort to correct the problem. Defendant and the developer offered to do certain remedial work if the parties could agree upon that work, but Plaintiffs failed or refused to proceed in accordance with that proposal. 8. Admitted. 9. Denied as stated. Defendant agreed to do certain work to complete or correct its obligations under the contract. Defendant, in fact, did that work. 10. Denied. Defendant returned and completed or corrected all of the work it was obligated to do under its contract. It was not able to satisfy Plaintiff's complaints about water on Plaintiffs' lot, but the problems with water on the lot were not within the scope of the contract between Plaintiffs and Defendant and were not Defendant's obligation to correct. 11. Admitted. 12. Defendant denies, however, that it has any obligations to correct any storm water drainage problem on the lot because that work was not within the scope of the contract between the parties and is the responsibilities of Plaintiffs and the developer. Defendant incorporates herein by reference the averments set out in its New Matter. 13. It is admitted that Gannett Fleming, Inc. issued a report and that a copy of that report is attached to Plaintiffs' Complaint. It is denied, however, that the problems described in the report were caused by Defendant or were Defendant's responsibility to correct. The averments set out in Defendant's New Matter are incorporated herein by reference. 14. Admitted. 15. Denied. To the contrary, Defendant organized a meeting of Plaintiffs, Defendant, the developer of the subdivision in which Plaintiffs' lot is located, and their representatives, in an effort to devise away to resolve the water problem on Plaintiffs' lots. Plaintiffs, however, failed to respond to the requests of Defendant and the developer for information about a proposed solution to the problem and, as a result, the developer declined to proceed further with corrective efforts. 16. Denied. After reasonable investigation, Defendant is not aware of exactly what it will cost to correct the problem on Plaintiffs' lot because that information is within the exclusive control of Plaintiffs, Plaintiff's engineer, and other parties, including the company that developed the subdivision. Accordingly, Defendant denies those averments and demands proof of them at trial. 17. Admitted. Defendant denies, however, that it has any obligation to correct the water problem on Plaintiffs' lot, which was not created by Defendant and was not within the scope of Defendant's obligations in its contract with Plaintiffs. 18. Admitted. 19. Denied as stated. Defendant admits it has not undertaken further action to correct the water problem on Plaintiffs' lot but denies that Defendant has any obligation to do so. The averments set out in Defendant's New Matter are incorporated herein by reference. COUNT I - BREACH OF CONTRACT 20. No answer required. To the extent that an answer is required, Defendant incorporates herein the averments set out in the other paragraphs of this answer and of Defendant's New Matter. 21. Admitted. However, the obligations of Defendant under the contract did not include regrading the lot or taking other steps to correct a water problem which existed on the lot as a result of the way the property was developed. Defendant incorporates herein, by reference, the averments set out in its New Matter. 22. Plaintiff well and truly performed all of its obligations under the contract and is not obligated to solve the water problems on the lot caused by the manner in which the lot was developed by others. Defendant incorporates herein by reference the averments set out in its new matter. 23. Denied for the reasons set forth in Paragraphs 21 and 22 above and in Defendant's New Matter, all of which are incorporated herein by reference. WHEREFORE, Defendant demands that this court dismiss Plaintiff's Complaint and enter judgment in favor of Defendant. COUNT II - QUANTUM MERUIT / IMPLIED CONTRACT 24. No answer required. To the extent that an answer is required, Defendant incorporates herein the averments set out in the other paragraphs of this answer and of Defendant's New Matter. 25. Admitted. 26. Admitted. However, Defendant states that it performed all of its obligations under the contract and is not obligated to cure or correct the water problem on Plaintiff's lot which was not within the scope of the contract between the parties and was not caused by Defendant. 27. Denied. Defendant has well and truly performed all of its obligations under the contract. The averments set forth in Paragraph 26 above and in Defendant's New Matter are incorporated herein by reference. 28. Denied. Defendant made no implied agreement or warranty. To the contrary, the agreement between the parties, and the subsequent warranty documents, disclaim any such promise, agreement, or warranty. WHEREFORE, Defendant prays this court to dismiss Plaintiff's Complaint and enter judgment against Plaintiffs and in Defendant's favor in this matter. COUNT III - UNJUST ENRICHMENT 29. No answer required. To the extent that an answer is required, Defendant incorporates herein the averments set out in the other paragraphs of this answer and of Defendant's New Matter. 30. Admitted. However, Defendant well and truly performed all of its obligations under the agreement between the parties and is fully entitled to the payment it received. 31. Denied. Defendant has not been unjustly enriched in any way by the dealings between the parties but, to the contrary, has received fair and reasonable payment for the construction materials and services it provided to Plaintiffs. Defendant has not refused to perform any of its obligations under the contract and is not obligated to correct the water problem on Plaintiffs' lot which is not within the scope of the contract between the parties and which was not caused by Defendant. Defendant incorporates herein, by reference, the averments set forth in Defendant's New Matter. WHEREFORE, Defendant prays this court to dismiss Plaintiff's Complaint and enter judgment against Plaintiffs and in Defendant's favor in this matter. NEW MATTER By way of further response to Plaintiffs' Complaint, Defendant sets out the following New Matter: 32. At the time Plaintiffs and Defendant entered into their contract, Defendant offered to Plaintiff a warranty program offered by RWC. The warranty program was to replace any implied or express warranty of Defendant with regard to the contract between the parties. At that time, Defendant provided Plaintiff with a copy of RWC's warranty information, a copy of which is attached hereto and marked as EXHIBIT A. 33. Upon substantial completion of the work on Plaintiffs' home, Plaintiffs and Defendant prepared an application for the RWC warranty program which Plaintiffs executed and delivered to RWC. A copy of that application is attached hereto and marked as EXHIBIT B. 34. RWC subsequently accepted Plaintiffs' application and issued its warranty to Plaintiffs for the property which is the subject of this dispute. 35. By applying for and accepting RWC's warranty program, Plaintiffs knowingly waived all claims against Defendant arising out of the contract between the parties, specifically including any warranty of workmanship, habitability, fitness for intended use, or the like. In essence, the RWC warranty replaced entirely any warranties, expressed or implied, made by Defendant with regard to the contract between the parties. 36. Under the terms of the RWC warranty program, as accepted by Plaintiffs when they applied for and accepted the warranty, all claims arising out of the construction of the home must be resolved by arbitration. As a result, Plaintiffs waived their right to proceed with this action against Defendant and must submit their claims regarding the construction of the home to arbitration pursuant to the RWC documents. 37. Under the terms of the contract, Defendant was required to construct a home for Plaintiffs. Defendant was not, however, responsible to select the lot on which the building was to be erected and was not responsible for storm water drainage or other problems resulting from the location, elevation, or other configuration of the lot. 38. Plaintiffs purchased the lot on which Defendant constructed the home from McNaughton Homes. Plaintiffs themselves selected the lot on which they contracted with Defendant to build their home. 39. Defendant, at no time, selected the lot or location for Plaintiffs' home or gave Plaintiffs any advice about the selection of the lot, the condition of the lot, or other matters relating to the storm water drainage problem which Plaintiffs now experience. 40. To the extent that Plaintiffs have any valid claim against any third party for the water problem on their lot, it is against the parties that laid out their lot, designed and installed storm water drainage systems and facilities, and who otherwise were responsible for the location, elevation, and configuration of Plaintiffs' lot and the storm water system which served it. 41. Although Defendant had no obligation to correct the water problem on Plaintiffs' lot, Defendant undertook efforts to find a way to solve the problem to Plaintiffs' satisfaction. Defendant's efforts involved some landscape work in Plaintiffs' yard, organizing a meeting with representatives of McNaughton Homes, the company that developed the lot and was responsible for the water problem on it, and other communications with Plaintiffs and their engineers and McNaughton Homes. 42. Defendant's efforts to resolve the problem for the benefit of Plaintiffs were unsuccessful because Plaintiffs failed to provide to McNaughton Homes the information McNaughton Homes needed to determine what remedial work it would do on Plaintiffs' lot and adjoining areas to solve the problem. Thus, because of Plaintiffs' failure to cooperate in the process, Defendant's efforts to assist in resolving the problem were unsuccessful. WHEREFORE, Defendant prays this court to dismiss Plaintiffs' Complaint and to enter judgment in this matter in favor of Defendant. 1 1 Sa 1 L. Andes Attorney for Defendant Supreme Court ID # 17225 525 North 12th Street Lemoyne, Pa 17043 (717) 761-5361 I verify that the statements made in this document are true and correct. I understand that any false statements in this document are subject to the penalties of 18 Pa. C.S. 4904 (unsworn falsification to authorities). Home Designs Unlimited, Inc. Date: /OZZ?oG Manager r°? ?_? :-_ - - ::? ?. -;7 - --: - (r ?? ?,-- ? ?w, -- ?: - ', , .,.:? BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant RETURN OF RULE TO SHOW CAUSE AND NOW, come Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly, by and through their attorneys, Jennifer B. Hipp, Esquire, and James D. Bogar, Esquire, and file this Return of Rule to Show Cause and respectfully assert that Defendant, Home Designs Unlimited, LLC's Petition to Compel Arbitration be determined to be without merit and dismissed based upon the following: 1. Admitted. 2. Admitted in part, denied in part. To the extent that Defendant intended to utilize the word "constructed" instead of the word "consulted", it is admitted that Defendant constructed a residence for Plaintiffs. The remaining allegations in Defendant's Paragraph No. 2 are conclusions of law to which no response is required and, as such, those allegations are specifically denied. 3. Admitted in part, denied in part. It is admitted that Plaintiffs were provided with a copy of the document attached as Exhibit "A" to Defendant's Petition to Compel Arbitration. The remaining allegation in Defendant's Paragraph No. 3 are specifically denied and, further, are conclusion of law to which no response is required. 4. Admitted in part, denied in part. It is admitted that Plaintiffs signed the document attached as Exhibit "B" to Defendant's Petition to Compel Arbitration. Any other allegations as to the extent to which Exhibit "B" impacts the claim set forth in Plaintiffs' Complaint are conclusions of law to which no response is required and, as such, are specifically denied. 5. Denied. Plaintiffs are without information to respond to the allegations set forth in Paragraph No. 5. 6. Denied. The allegations set forth in Defendant's Paragraph No. 6 are conclusions of law to which no response is required. Further, on or about December 31, 2004, Defendant's representative, Denise P. Thompson, Vice-President, Home Designs Unlimited, LLC, advised Plaintiffs that the storm water drainage issues were not covered or included in the Home Warranty Contract. A copy of Ms. Thompson's December 31, 2004 correspondence is attached hereto and incorporated herein as Exhibit "A". 7. Denied. The allegations set forth in Defendant's Paragraph No. 7 are conclusions of law to which no response is required. By way of further answer, Plaintiffs also incorporate the Answer to Paragraph No. 6 of Defendant's Petition to Compel Arbitration. 8. Denied. The allegations set forth in Defendant's Paragraph No. 8 are conclusions of law to which no response is required. 9. Denied. Plaintiffs are without sufficient information to respond to the allegations as set forth in Defendant's Paragraph No. 9. WHEREFORE, Bernard V. Kelly, Jr. and Michele A. Kelly respectfully request that this Honorable Court Order that Defendant's Petition to Compel Arbitration be determined to be without merit and dismissed with prejudice. Respectfully submitted, Date: November 2006 J-\? c C7 r Jenn er B. Hipp, Esquire Pa. I.D. No. 86556 Ja es D. B ar, Esquire Pa. T.D. No. 19475 One West Main Street Shiremanstown, PA 17011 (717) 737-8761 Attorneys for Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly . BERNARD V. KELLY, JR., and MICHELE A. KELLY, Plaintiffs V. HOME DESIGNS UNLIMITED, LLC, Defendant IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW DOCKET NO. 06-3245 CIVIL TERM CERTIFICATE OF SERVICE We, Jennifer B. Hipp, Esquire, and James D. Bogar, Esquire, hereby certify that we are this day serving the foregoing Answer to Return of Rule to Show Cause upon the following named individual this day by depositing same in the United States Mail, First Class, postage prepaid, at Shiremanstown, Pennsylvania, addressed as follows: Samuel L. Andes, Esquire 525 North Twelfth Street P.O. Box 168 Lemoyne, PA 17043 Date: November 2006 Jenni B. Hipp, Esquire el'1?40'd /'?-46W JJamets D. B t, Esquire UNLIMITED ' ?esi?n .Z6 `?onstxuction www.HomeDesignsUMimited.com December 31, 2004 Attn: Jennifer B. Hipp James D.' Bogar One WesflVlain Street 'Shrememanstown, PA 17011 SENT'VIA FAX AND US MAIL Dear Ms. Hipp, ; Tlus_letter will serve as our written response to your letter dated.December. 14, 2004 arid our phone conversation on December 16, 2004. As we discussed; the majority of the, Kelly's year-end warranty items have been scheduled and completed. According to our. records; on November 15, 2004 our representative completed all the covered warranty items,on the,list with the exception. of those that required further action and/or scheduling by our sub contractors. Those items are as follows: 1. Drywall, Cracksl*pairs - On 12/08/04 Geesaman Drywaller's completed, some work, but due to limited time available allthe required repairs could root-be completed. The Kelly's-were instructed by the diywallers to contact their office to. schedule the balance of the work to, be completed: According to their records, they were never contacted to ie=schedule. 2. Windows . This will require a scheduled meeting with our window representative to inspect and evaluate the windows that the Kelly's are experiencing a problem with. Any corrective measures and/or parts will be scheduled and/or ordered upon -the completion of this evaluation. This inspection can be scheduled as soon as the Kelly's have available time.- 3. Un-Level Floors - These issues could not-be addressed during our scheduled work list on November 15, 2004. This will require and inspection by our Framing . Contractor. At his recommendations, we will then take the necessary corrective actions to address their. concems. This inspection can be scheduled as soon as the Kelly's have available time. EXHIBIT P.O. Box 387, New Kingstown, PA 17072 -Office 717-960-0295 - Fax 717-960-9744 HDU@HomeDesignsUnlimited.com This 'leaves only (2) items on the Kelly's year-end warranty list that are not considered warranty issues and will not be completed by Home. Designs Unlimited. They are-the installation of (5). dimmer switches and the backyard drainage issues. The dimmer switches are not part of the Kelly's contractor are they considered 'a warranty item. We have, suggested to the kelly?s in the past that they should contact . Gaffney's Electrical Contracting @ 717-432-9473,directly..to obtain :a quote -and schedule this work to be completed.. As it relates to the backyard drainage issue, it is our position at this time that the backyard drainage issues the Kelly's are. experi encing is not'considered. a covered warranty item as. outlined in the Warranty Standards - Year One Coverage - 3X16 provided to them ?by the Residential Warranty Corporation. As you are aware,.we have already-compleied. additional work at the Kelly's residence Above their contract for which we have never received payment. The Kelly's authorized'ihis work prior to any work commencing. We certainly understand. the frustration the Kelly's:must be experiencing as a result of this water drainage pri oblem. - However, we feel that other factors. are contributing Ito their problem that is beyond`.the control of Home Designs Unlimited.' Please be assured that we will appropriately address the balance of items with the Kelly's home that are considered. builder's'responsibility as set forth in their :Year One ' Residential Warranty Coverage. if you have any questions or require clarification of their warranty, please feel free to contact the Residential Warranty .Corporation @ 717-561- 4480. I will look forward to hearing from-you in an effort to-bririg:this matter to a quick and complete close that will be satisfactory to all parties involved. Sincerely, Home'Designs Vfit4uite4, LLC ign ? Cons u on ,Denise P.. Thompson Vice President Cc: David R. Thompson-President File ?' } r -? ? ? -t'1 ? ? ?ry _ _ ,??f ! r \.L? BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant ANSWER TO NEW MATTER AND NOW COME Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly, by and through their attorneys, Jennifer B. Hipp, Esquire, and James D. Bogar, Esquire, and file this Answer to New Matter as follows: 32. Denied. The allegations set forth in Defendant's Paragraph No. 32 are conclusions of law to which no response is required and, as such, those allegations are specifically denied. 33. Denied. The allegations set forth in Defendant's Paragraph No. 33 are conclusions of law to which no response is required and, as such, those allegations are specifically denied. 34. Denied. Plaintiffs are without sufficient information to respond to the allegations set forth in Defendant's Paragraph No. 34. 35. Denied. The allegations set forth in Defendant's Paragraph No. 35 are conclusions of law to which no response is required and, as such, those allegations are specifically denied. By way of further answer, Defendant's representative, Denise P. Thompson, Vice-President, Home Designs Unlimited, LLC, advised Plaintiffs in writing that storm water drainage issues were not covered or included in the home warranty contract. A copy of Ms. Thompson's December 31, 2004 correspondence is attached hereto and incorporated herein as Exhibit "A". 36. Denied. The allegations set forth in Defendant's Paragraph No. 36 are conclusions of law to which no response is required and, as such, those allegations are specifically denied. 37. Admitted in part, denied in part. It is admitted that Defendant did not select the lot on which the Plaintiffs' home was to be erected. It is specifically denied that the Defendant is not responsible for the storm water drainage problems that are present at the Plaintiffs' home. 38. Admitted. 39. Admitted in part, denied in part. It is admitted that the Defendant did not select the lot or location for Plaintiffs' home. It is specifically denied that Defendant did not provide Plaintiffs with advice about the selection of the lot, the condition of the lot, or other matters relating to the storm water drainage problem which Plaintiffs now experience. By way of further answer, the Defendant's representative, David Thompson, advised the Plaintiffs that Defendant could make the Plaintiffs' back yard as flat as possible, but that it would be mindful to do so without creating any storm water drainage problems. 40. Denied. The allegations set forth in Defendant's Paragraph No. 40 are conclusions of law to which no response is required and, as such, those allegations are specifically denied. 41. Denied. It is specifically denied that Defendant does not have an obligation to correct the storm water drainage problem that exists at the Plaintiffs' home. By way of further answer, it is specifically denied that the Defendant undertook efforts to successfully solve the storm water drainage problem at the Plaintiffs' home. Defendant did undertake some allegedly ameliorative efforts which were completely unsuccessful. It is specifically denied that Defendant organized a meeting with representatives of McNaughton Homes. By way of further answer, it is admitted that Plaintiff and its engineering representatives organized a meeting with Defendant and a representative of McNaughton homes and Hampden Township. 42. Denied. It is specifically denied that Defendant's efforts to resolve the problem for the benefit of Plaintiffs were unsuccessful based upon any actions taken or not taken by the Plaintiffs. By way of further answer, Plaintiffs have fully cooperated in any efforts to work with Defendant and McNaughton Homes to seek a resolution of the storm water drainage problem present at the Plaintiffs' home. WHEREFORE, Plaintiffs demand judgment against Defendant, Home Designs Unlimited, LLC, in the amount of nine thousand dollars ($9,000.00), plus interest, with the costs of this action, attorney's fees, engineering fees, and any other relief deemed just and appropriate. Respectfully submitted, Date: November 22, 2006 Jenni er B. Hipp, Esquire Pa. I. b. No. 86556 One West Main Street Shiremanstown, PA 17011 (717) 737-8761 Attorneys for Plaintiffs, Bernard V. Kelly, Jr. and Michele A. Kelly VERIFICATION We verify that the statements made in this Answer to New Matter are true and correct. We understand that unsworn statements herein are made subject to the penalties of 18. Pa. C.S.A. § 4904, relating to unsworn falsification to authorities. Date: IVOV- oZo1 2006 X . Bernard V. Kelly, Jr. Mich le A. Kelly ? UNLIMITED ?esi?n .? `?onstz?uction .. - ' ? www.HomeDesignsUnlimfted.com?? December 31, 2004 Attn: Jennifer B,_HipP James D.'Bogar One West Main Street Sli rmvriemanstown, PA 17011 S,ENT`VU FAX AND .US MAIL This. letter:will ' serve as our-written response to your letter, datted.December 14' 2004 -and our plione= conversation on December 16, 2004. As we "discussed; the majority of the Kelly's year=end warranty items have-been scheduled and completed: Accordingto our... : "recoils; on: November l S, 2004 our representative completed all the covered warranty items on the, list with the exception, of those that required further action and/or scheduling. ..by our. sub contractors: Those items are as follows: J -Drywall aaks/Repairs - On 12/08/04 Geesaman Drywaller's completed..some work,.. but.due'to limited tiine available all the required repairs could notbe completed. - The Kelly's -were instructed by the drywallers to contact their office to. schedule the balance of the work to, be completed.- According to theirsecords,, they were never contacted to ie-schedule. - 2. Windows , This will require a scheduled meeting with our window, representative to inspect and evaluate the windows that the Kelly's are experi encing a problem with. Any corrective measures and/or:parts. will be scheduled and/or ordered uponthe completion of this evaluation. This inspection can be scheduled as soon as the Kelly's have available time. 3. Un-Level Floors - These issues could not-be addressed during -our scheduled work list on November 15, 2004. This will require and inspection by our Framing . Contractor. At his recommendations, we will-then take the necessary corrective actions to address their. concerns. This inspection can be scheduled as soon as the Kelly's have available time. EXHIBIT P.O. Box 387, New Kingstown, PA 17072.Office 717-960-0295 - Fax 717-960-97.44 ?? Ll ?? HDU@HomeDesignsUnlimited.com /// ??? This leaves only (2) items on the Kelly's year-end warranty list that are not'considered warranty -issues and will not be completed by Home. Designs Unlimited: They are*the installation of (5). dimmer switches.and the backyard drainage issues. The dimmer switches. are not part of the Kelly's contractor are they considered a warranty item: We have' _suggested to the Kelly's in the past that they should contact Gaffney's Electrical Contracting @- 17 -432-9473 directiy:to obtain-a quote -and schedule. 'this work to be completed.. As it relates to.the backyard drainage issue, it is our position -atthis time that the backyard drainage issues the Kelly's are. experiencing is not considered a covered: warranty item as. outlined in theWarranty Standards -Year One.Coverage - 3-16 provided to themby the Residential Warranty Corporation: AsYou are aware,:we have already-completed, additional work at the Kelly's residence -above their contract for which we have. never received payment.' .'The Kelly's authorized' this work prior to any work commencing. We certainly understand. the frustration the Kelly's ,must be experiencing as a result of tTus:water-drainage problein.' However, we feel that other factors- are-contributing their . problem that is beyond`the control of Home Designs Unlimited.' 'Please be assured-that we will appropriately address the balance of items with the Kelly's ' home that are considered, builder's responsibility ' set forth in their Year One ' Residential Warranty Coverage. if youhive any questions or require clarification-'of their warranty, please feel free to contact the Residential Warranty,:Corporation @ 717-561- 4480. I will look forward to hearing from-you in an effort to bring :this matter to a quick and complete close that will be satisfactory to all parties iiivolved.' Sincerely, Home' Designs 'tech LLC ign Cons u n Denise P.: Thompson Vice President Cc: David R Thompson-President File BERNARD V. KELLY, JR., and : IN THE COURT OF COMMON PLEAS OF MICHELE A. KELLY, : CUMBERLAND COUNTY, PENNSYLVANIA Plaintiffs V. CIVIL ACTION - LAW HOME DESIGNS UNLIMITED, LLC, DOCKET NO. 06-3245 CIVIL TERM Defendant CERTIFICATE OF SERVICE I, Jennifer B. Hipp, Esquire, hereby certify that I am this day serving the foregoing Answer to New matter upon the following named individual this day by depositing same in the United States Mail, First Class, postage prepaid, at Shiremanstown, Pennsyl- vania, addressed as follows: Samuel L. Andes, Esquire 525 North Twelfth Street P.O. Box 168 Lemoyne, PA 17043 Date: November 22, 2006 Jennife B. Hipp, Esquire j a CD Curtis R. Long Prothonotary Office of the Vrotbonotarp Cumberfanb Countp Renee K. Simpson Deputy Prothonotary John E. Slike Solicitor (?lo - -3 Z4/,5 CVIL TERM ORDER OF TERMINATION OF COURT CASES AND NOW THIS 28TH DAY OF OCTOBER, 2009, AFTER MAILING NOTICE OF INTENTION TO PROCEED AND RECEIVING NO RESPONSE - THE ABOVE CASE IS HEREBY TERMINATED WITH PREJUDICE IN ACCORDANCE WITH PA R C P 230.2. BY THE COURT, CURTIS R. LONG PROTHONOTARY One Courthouse Square - Carlisle, Pennsylvania 17013 - (717) 240-6195 - Fax (717) 240-6573