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HomeMy WebLinkAbout95-06238 lAK/302.2.1I041896 A VISO USTED HA SIDO DEMAND ADO EN LA CORTE. Si usted desea defenderse de las quejas expuestas en las p4ginas siguientes, debe lomar acci6n dentro de veinte (20) dras a partir de la fecha en que recibi6 1a demanda y el aviso. Usted debe presentar comparecencia escrita en persona 0 por abogado y presentar en la Corte por escrito BUS defensas 0 sus objeciones alas demandas en au contra. Se Ie avisa que si no se defiende, el caso puede proceder sin usted y la Corte puede decidir en su contra sin rnas aviso 0 notificaci6n por cualquier dinero reclamado en la demanda 0 por cualquier otra queja 0 compensaci6n'reclamados por e1 Demandante. USTED PUEDE PERDER D1NERO, o PROPIEDADES U OTROS DERECHOS IMPORTANTES PARA USTED. UEVE ESTA DEMANDA A UN ABOGADO INMEDlATAMENTE. SI USTED NO T1ENE o NO CONOCE UN ABOGADO, VA Y A 0 LLAME A LA OFICINA EN LA DIRECCION ESCRlTA ABAJO PARA AVERlGUAR DONDE PUEDE OBTENER ASISTENCIA LEGAL. Court Administrator 4th Floor Cumberland County Courthouse Carlisle, PA 17013 Telephone: (717) 240-6200 --_...,""--" IAKlJ0242,1I041896 4. Fry is a printing company that holds itself out as having special expertise, knowledge and skill to print magazines for newsstand distribution. S, In August 1993, Lifetime and Fry entered into an agreement for the printing of "Money Lines" and "FeU's U.S. Coins." 6. Pursuant to the agreement, Fry was to print quarterly issues of the aforementioned magazines for Plaintiff, for newsstand distribution over a three year period. 7. Thereafter, Fry printed numerous issues of "Money Lines" and "FeU's U.S. Coins" for Plaintiff. On each occasion up to Apri127, 1994, when Fry printed "Money Lines" and "FeU's U.S. Coins", Fry printed UPC codes on the rnagazines. 8. On or about Apri127, 1994, Fry printed one issue of "Money Lines" and one issue of "FeU's U.S. Coins" for Plaintiff. 9. In order to print the covers for these magazines, Fry was provided with two pieces of film per magazine. One of the films contained the graphics for the cover and the other film contained the UPC code which was to be placed on the cover. 10. Although Fry was provided with the film containing the UPC code, Fry printed the magazines without the UPC code on the magazine covers. 11. Magazines for newsstand distribution such as "Money Lines" and "FeU's U.S. Coins" cannot be sold without UPC codes. 12. After Fry printed the magazines without the UPC code, Fry forwarded the magazines to Clark Distributing Company, who discovered the error and notified Fry. 4 JAKl30242.I/04f896 13. Upon being infonned of the problem, Fry failed to take any action to correct the problem or to prevent distribution of the magazines to approximately three hundred wholesalers. 14. As a result of Fry's conduct, Plaintiff has suffered loss, harm and damage which consists of the cost to print stickers containing the UPC code, the cost to mail the UPC stickers to wholesalers and the labor cost associated with affixing the UPC stickers to the magazines. In addition, Plaintiff has suffered lost sales and lost profils as a result of Defendant's aClions. COUNT I LIFETIME PERIODICALS,INC. v. FRY COMMUNICATIONS, INC. BREACH OF CONTRACT 15. The alJegations contained in ~ Ilhrough 14 are incorporated herein by ref~"Ix:ed. 16. Although Fry provided Plaintiff with a contract for execution, a contract was never execuled by the panies. 17. The contract in this case is composed of oral communications and is based, in pan, on the course of dealings between the parties. 18. In printing magazines prior 10 April 27 , 1994, Fry printed the UPC code on each issue of "Money Lines" and "Fell's U.S. Coins". 19. In printing the Summer 1994 issues of "Money Lines" and "Fell's U.S. Coins", Fry did not print the UPC code on the cover even though Plaintiff provided Fry with the UPC code. 20. In failing to print the UPC code, Fry breached its contracl with Plaintiff. 21. As a result of Fry's breach, Plaintiff suffered damages as set forth in Paragraph 14. 5 JAKl30242.1/04IS96 "''-'<~rl;' , l'" ~',. ' WHEREFORE, Plainliff respectfully requesls this Court enler judgment in ils favor and against Defendant in an amount in excess of Twenly Thousand ($20,000.00) Dollars plus interest and costs of sull. COUNT II LIFETIME PERIODICALS, INC. v. FRY COMMUNICATIONS, INC. PROMISSORY ESTOPPEL 22. Plaintiff incorporales herein by reference the allegations of Paragraphs 1 through 21 \' above. 23. Prior to Plaintiff retaining Defendant, Defendant represenled thaI II would properly publish Plaintiffs magazines. 24. Plaintiff, relying on Ihe represenlalions of Defendant, retained Defendant to print the magazines. 25. In so relying on Defendant, Plainliff has been harmed since Defendant, as set forth above, did not properly publish the magazines. WHEREFORE, Plaintiff respeclfully requests this Court enler judgment in its favor and against Defendant in an amount in excess of Twenty Thousand ($20,000.00) Dollars plus interest and COlts of suil. 6 . 1AKl30242,11lU1196 . COUNT III LIFETIME PERlODCALS, INC. v. FRY COMMUNICATIONS, INC. BREACH OF WARRANTY 26. The aIJegluions COJVaJned in plU'llgraphs Ilhrough 2S are incorporated herein by rere....uxI. 27. Fry is a printer that holds itself out as having special expertise, knowledge and skill to print magazines for newsstand distribution. 28. Fry knew the purpose for which II was printing the magazines for Plaintiff. 29. Fry knew that Plaintiff was relying on Fry's skill, knowledge and experience in printing the magazines. 30. By failing to print UPC codes on the cover of the magazines, Fry breached the implied warranty of merchantability. 31. By failing to print UPC codes on the cover of the magazines, Fry breached the implied warranty of fitness for a particular purpose. WHEREFORE, Plaintiff respectfully requests this Court enter jUdgment in its favor and against Defendant in an amOunt in excess of $20,000.00, plus interest and costs of suit. By: ennifer , Supreme Court No. 65950 100 East Market Street P. O. Box 15012 York, Pennsylvania 17405-7012 (717) 846-8888 7 , . JAKl30242,1104"1896 CERTIFICATE OF SERVIC~ AND NOW, this..2:1=- day of April, 1996, I, Jennifer A. Kline, Esquire, hereby certify that I have served the within Complaint by d~poslling the same in the United States mail, postage prepaid, at York, Pennsylvania, addressed as follows: .' Theodore A. Adler, Esquire 2331 Market Street Camp Hill, PA 17011 By 17405-7012 IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW LIFETIME PERIODICALS, INC., Plaintiff No. 95-6238 civil Term vs. FRY COMMUNICATIONS, INC., Defendant PRABCIPB TO SBTTLB, DISCONTINUE AND BND To the Prothonotary: please mark the above-captioned action as discontinued in its entirety, with prejudice. Plaintiff Lifetime Periodicals, Inc. hereby discontinues the action with respect to all claims against Defendant Fry Communications, Inc.. Defendant Fry Communications, Inc. hereby discontinues the action with respect to all counterclaims against Lifetime Periodicals, Inc. Date: t,1/rlff! I , By: , innl. Supreme Court No. 74453 100 East Market Street P. O. Box 15012 York, PA 17405-7012 (717)846-8888 Counsel for Lifetime Periodicals, Inc. By: Denis F. She Is, Esquire 1101 Market Street, Suite 2400 Philadelphia, PA 19107-2924 Counsel for Fry Communications, Inc. ,. th<'.f>f(y:~rt':#,~....,i1fo;'i.;"';'''' IN THB COURT OF COIOlON pLIAS OF CUMBERLAND COUlfTY, PENNSYLVANIA CIVIL ACTION - LAW LIFBTIMZ PERIODICALS, INC., Plaintiff/counterolai. Defendant , . : No. 95-6238 Civil Tera . . : . . . . v, , . FRY COKMUNICATIONS, INC" Defendant/Counterolai. Plaintiff : : , . . , ....l:l!1I 'fa .....aft TO: LIFBTIMZ PERIODICAts, INC, YOU ARB HEREBY NOTIFIED TO FILE A WRIorrEM RESpONSE TO THZ ENCLOSED NEW MATTER AND COUlfTERCLAIM WITHIN TWENTY (20) DAYS FROM THZ SERVICE HEREOF OR A JUDGMENT MAY BE ENTERED AGAINST YOU. ,C. ADLER, ESQUIRE Dated: May 13, 1996 o " I. TRI COURT O. COKKOII .LBAS O. CUKBBRLAHD COUWTV, .....YLVAMIA CIVIL ACTIOII - LA. LI.ITI.. ...IODICALS, IIIC. plaintiff/counterolaim Defen4ant I I I I I I I I I I I 110. '5-'23' civil Tera v. ftV COJIIIUIIICATIO.I, IIIC., Defen4ant/counterolaim Plaintiff D..IJIDAIlT ..V COIDIUIIICATIOIIS, IIIC, 'I US.O, ... 1IA'l'T0 AlII) COUWTOCLAIII TO PLAIIlTU.' S lUIDlDBD COIIPLAIII'1' Defendant, Fry Communications, Inc, ("Fry") hereby answers plaintiff's Amended Complaint as follows: 1, Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations contained in this paragraph, 2, Admitted, 3, Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations contained in this paragraph, 4, Denied as stated, It is admitted only that Fry is a printing company, The remaining allegations of this paragraph are denied, 5, Denied as stated, It is admitted that plaintiff Lifetime periodicals, Inc. alkla Block-Buster Periodicals, Inc, ("Lifetime") and Fry entered into an agreement for the printing of "Money Lines" and "Fell's U.S, Coins" in or about the fall of 1993, A true and correct copy of the agreement is attached hereto as Exhibit "A", The remaining allegations in this paragraph are denied, 6. Denied as stated, Since the agreement is in writing, it speaks for itself. 7, Denied as stated. It is admitted that prior to April 27, 1994, Fry had printed 2 issues each of "Money Lines" and "Fells U,S, coins". It is further admitted that for these issues Lifetime provided Fry, pursuant to the agreement, with gna composite page negative that included a UPC code, The remaining allegations in this paragraph are denied, 8, Admitted, 9, Denied as stated, It is admitted that in connection with the April, 1994 printing of "Money Lines" and "FellS' U,S, coins" Fry was provided with two pieces of film per magazine by plaintiff, By way of further response, this was contrary to the terms of the agreement which required one composite page negative and which had been the practice followed by Lifetime for the previous issues. Furthermore, the film provided by Lifetime containing the UPC code was not readily noticeable in the package provided, On the contrary, the film containing the UPC code was hidden in an envelope taped to the back of an artboard, No verbal or written notification of thie was provided to Fry, Finally, Lifetime was provided the opportunity to approve the "proof" or "bluelines" prior to printing, Lifetime waived approval of the bluelines and thue '. -2- "appt'oved" the magazines in the form in which they were printed. 10, Denied as stated, It is admitted that the magazines were printed without the UPC code on the magazine covers, This was due to Lifetime's failure to comply with the terms of the agreement and to abide by its previous practice of providing one composite negative which included a UPC code, 11, Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations contained in this paragraph, 12, Denied as stated, It is admitted only that the maga~ines had been forwarded to Clark Distributing company, The remaining allegations in this paragraph are denied. 13, Denied, The allegations asserted in this paragraph are denied, It is specificallY denied that Fry did not take any action after Lifetime notified Fry that Lifetime intended to include a UPC code on the magazines, 14, Denied, Fry specifically denies that Lifetime has suffered any loss or harm as a result of Fry's conduct or actions, -3- -'....... . -. COUNT I 15, Detendant Fry repeats, reiterates and realleges each ot the averments set forth in paragraphs 1 through 14 ot this Answer as if fully set forth herein, 16, Denied as stated, It is admitted that Fry provided Litetime with the agreement, a copy ot which is attached hereto as Exhibit "A", Although Lifetime never provided detendant with an executed copy, its terms and conditions had been and were accepted by Lifetime through its words, action. and course of conduct, 17. Denied as stated, The agr.eement is attached hereto as Exhibit "A", The agreement's terms and conditions had been and were accepted by plaintiff through its words, action. and course of conduct, The remaining allegations asserted in this paragraph are denied, 18, Denied as stated, It is admitted that prior to April 27, 1994, Fry had printed 2 issues each ot "Money Lin.." and "Fell's U,S, coins". It is further admitted that tor the.. issues Litetime provided Fry, purauant to the agreement, with ani composite page negative that included a UPC code, The remaining allegations in this paragraph are denied, 19, Denied as stated, It is admitted that in connection with the April, 1994 printing ot "Money Lin.." and "Fell's U.S, coins" Fry was provided with two pieces ot tilm p.r magazine by Lifetime. By way of further response, this wa. contrary to the terms of the agreement which required on. -4- composite page negative and which had been the practice followed by Lifetime for the previous issues, Furthermore, the film provided by Lifetime containing the UPC code was not readily noticeable in the package provided, On the contrary, the film containing the UPC code was hidden in an envelope taped to the back of an artboard, No verbal or written notification of this was provided to Fry, Finally, Lifetime was provided the opportunity to approve the "proof" on "bluelines" prior to printing, Lifetime waived approval of the bluelines and thus "approved" the magazines in the form in which they were printed. 20, Denied, It is specifically denied that Fry breached its contract with Lifetime. 21, Denied, It is specifically denied that Fry is in breach of the contract, It is further denied that Lifetime has suffered any loss or harm as a result of Fry's conduct or actions, WHEREFORE, defendant Fry prays that judgment on the Amended Complaint be entered against plaintiff Lifetime and for defendant, with costs assessed against plaintiff, COUNT :n 22, Defendant Fry repeats, reiterates and realleges each of the averments set forth in paragraphs 1 through 21 of this Answer as if fully set forth herein, 23, Defendant Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations -5- contained in this paragraph, Fry demands strict proof thereof at trial, 24, Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations contained in this paragraph, Fry demands strict proof thereof at trial, 25, Denied, Fry specifically denies the allegations that it did not properly publish the magazines, Fry further denies that plaintiff has suffered any loss or harm as a result of Fry'S conduct or actions. WHEREFORE, defendant Fry prays that judgment on the Amended Complaint be entered against plaintiff Lifetime and for defendant, with costs assessed against plaintiff, COUNT III 26, Defendant Fry repeats, reiterates and rea 1 leges each of the averments set forth in paragraphs 1 through 25 of this Answer as if fully set forth herein, 27, Fry as stated, It is admitted only that Fry is a printing company, The remaining allegations of this paragraph are denied, 28, Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations contained in this paragraph. 29, Fry denies knowledge or information sufficient to form a belief as to the truth of the allegations contained in this paragraph, -6- ,'" -~,-~-,-,.._.. , , 30, Denied, It is specificallY denied the Fry breached the implied warranty of merchantability, 31, Denied, It is specifically denied that Fry breached the implied warranty of fitness for a particular purpose, WHEREFORE, defendant Fry prays that judgment on the Amended complaint be entered against plaintiff Lifetime and for defendant, with costs assessed against plaintiff. liD MATTII!. a~FIRMATIVI DIFIIISIS 32, plaintiff's causes of action fail to state a claim upon which relief can be granted, 33, plaintiff's claims are barred by the doctrines of waiver and estoppel, 34, plaintiff's claims are barred by the doctrine of unclean hands, 35, plaintiff's claims are barred by the doctrines of excuse, release, satisfaction and discharge, 36, plaintiff's claims are barred, in whole or in part, by reason of the applicable statutes of limitations, 37, plaintiff's claims are barred by plaintiff's material breaches of contract, 38, plaintiff frustrated the purpose of the agreement by its conduct, 39, plaintiff has failed to mitigate its alleged damages, -7- 40, Any damages sustained by plaintiff are ~ minimis, remote and speculative, 41, Consequential or incidental damages are excluded under the terms of the agreement, 42, To the extent any amounts are owed by defendant to plaintiff, such amounts are offset by the amounts owed defendant as a result of plaintiff's breach of contract, COUNTBRCLAIM Defendant, Fry Communications, Inc, ("Fry") by way of a counterclaim against plaintiff says: COUNT I BREACH or CONTRACT 43. Defendant - counterclaim plaintiff Fry repeats, reiterates and real leges each of the averments set forth in paragraphs 1 through 42 above, 44, In or about the fall of 1993 Fry and plaintiff/counterclaim defendant Lifetime entered into an agreement for the printing of "Money Lines" and "Fell's U,8, Coins", A true and correct copy of this agreement is attached hereto as Exhibit "A", 45, Pursuant to the agreement, Fry printed 3 i..ue. each of "Money Lines" and "Fell's U,S, Coins", 46, Fry submitted to Lifetime its invoices 35187, 35781, 37435, 37486, 38858, 40030 and 41136 on or about 8epteaber 15, 1993, November 17, 1993, February 3, 1994, January 7, 1994, -8- ^pril 7, 1994, April 27, 1994 and March 7, 1~94 respectively for it. .ervic.., 47, Payment ot the invoices, totalling $2,279.82, is pa.t due and Litetime has tailed and retused to pay said amount in breach ot the terms ot the agreement, COUNT II aCCOUNT 8TaTBD 48, Detendant/counterclaim plaintiff Fry repeats, reiterate. and realleges each ot the averments set forth in paragraphs 1 through 47 above. 49. Fry performed printing services for Lifetime upon cpen acccunt tor which it rendered its invoices 35187, 35781, 37435, 37486, 38858, 40030 and 41136 to Lifetime on September 15, 1993, November 17, 1993, February 3, 1994, January 7, 1994, April 7, 1994, April 27, 1994 and March 7, 1994, respectively, 50, Litetime has tailed to object to or controvert the invoice. .ubmitted. 51, Litotime has failed and refused to pay $2,279.82 due upon the atoresaid invoices. WHEREFORE, defendant/counterclaim plaintiff Fry r..pecttully requests that the Court enter judgment in its favor and against plaintiff/counterclaim defendant Lifetime as follows: (a) dismissing with prejudice the claims asserted against Fry in the Amended Complaint; (b) entering judgment for Fry and against Lifetime on Fry's counterclaims; -9- VERIFICATION Mary Roberts, Comptroller for Fry communications, Inc., affirr118 that the facts set forth in the foregoing Anewer, New Matter and Counterclaim are true and correct to the beet of her knowledge, information and belief, I understand that false statements are subject to the penalties of 18 Pa. c.s. 54904 relating to unsworn faleification to authorities. ~ IJM- Ha~berts DATE I HAY 8, 1996 1"AR-0"-I"~ 1111118 FR0I1 ~foll ~UC1'U~1I~HIIUI'C IU guG ~Wlt I ,. .~.' '^''''' FRY ~_CA'__ .... ,_,_ 1rI-&&"'" Plle_ I Number: 12606-R PROPOSAL Requcslied by: Chris Locke 0 ext. 281 . Block-Blister Periodicals. Inc. AtllI; Don LeUlII 2131 HoI1~wood Drive HoIlywooa. FL 33020 PIIoael (305) 925..5243 fax: (305) 925-5244 Dat.1 12/17193 1'1&-: Quantit)'l VarlaDal: Slit: Materlat: 1W0 TlTLES . Propoul for a three year contract 144 Pallel + 4 Pille Cover One titl, at 50,000 caples and One title ,t 60,000 copies. 2" 5 3/16 · 7 5.18 Strip one nellllive per color per paae from supplied RIlED compolite pap neptives. Make one set of bluclinc proofs. AU other prep work required wW be additional. 'RII: Piper: Cover: Sheetfec! ,4 Color Process, 4/0, Bleeds. Non.heatset Web Orrset - 1/1, BIIdt ink only, No bleeds. Ion CIS BI.24'"36 0 57.95/CWT (Minimum 2 Week Order Time Required) Or: 100' Ctd Free Sheet Bs.25-38 " 6S.oo/CWT (Minimum 2 Week Order Time Rcquired) Text: 3SN Abitibi Prem 70 Bs.~'"38 " 29.oo/CWT (Minimum 5 Week Order nOle Required) Or: 351 Se\ille 76 (76 briahtness: 88 Oplell)') 81.25-38 @ 2S.9OICWT IMinim\.m 5 Week Otcler Time RequIred) Or: 351 Bulky o5PT Ablrtbl 70 B5.205e38 41 29.OOICWT IMlnlmum 6 Week Order Time Required) Perfect Bind ....1 Cover: Texl: BIlIdlna1 Paeldn. & Dlltrlbtllion: Bundle for N~wS~Ia.nd dislributiol:, F~V COMM'JNICATIONS. INC, ,717) 766.02111 F..: (7171 <<191,0341 OUI of Sill., leeOI 334,14a9/ln 51ot1': (eOOI 524.)2)2 BOO WeSI Chur,h Road. MtchlOlClburg. PI>. 17055 ~-04-1l!96 HIIIl! FROl'l FRY COITUUCAT IONS IU DUe :w,iar-' ,...~/lU"'j Nllmber: \';Z,j PllCES PEa COpy PER TITLE: 5O,GOO Or 1 tItII ~~ 01 the odler +/. 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"1.12 tOlU4 2.00 ".00 4.11 7,110 11.00 1.00 2.00 10.00 llIII tm..r.rl!&" o. ...vrlm aID lOW, thi. 13th day of May, 1996, I h.reby v.rify that I have caUlled . true and cornet copy of the foregoinq dOCWllellt to b. pl.ced in the u,s. ..il, fir.t cl..., po.tag. pr.paid .nd .ddr....d a. follov., J.nnif.r A. Klin., B.q. Paul W. Minnich, B.q, Barl.y, snyd.r, S.nft , Coh.n 100 B..t Market Str..t P.O, Box 15012 York, PA 17405-7012 LIPBTIME PERIODICALS, INC" Plaintiff IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW v, I I I I I I I NO, 95-6238 CIVIL TERM FRY COMMUNICATIONS, INC., Defendant IN REI DEFENDANT'S PRELIMINARY OBJECTION BEFORE OLER. J. ORDER OF COURT AND NOW, thh 1rd day of April, 1996, after careful consideration of Defendant's preliminary objection in the nature of a demurrer, and for the reasons stated in the accompanying opinion, the preliminary objection is SUSTAINED and count I (negligence) of Plaintiff's complaint is DISMISSED, PLAINTIFF is GRANTED 20 days within which to file an amended complaint if it cares to do so to supplement its contractual claim. Defendant shall have 20 days from service of any such amended complaint, or 20 days from the expiration of the time for filing an amended complaint if none is filed, to file a responeive pleading. BY THE COURT, J Jennifer A. Kline, Esq, Paul W. Minnich, Esq, BARLEY, SNYDER, SENFT' COHEN 100 East Market Street P,O, Box 15012 York, PA 17405-7012 Attorneys for Plaintiff . ,,' . d~' ... "! , ' "'l , -. ) . 'C,,,__:;,,=.;..,'",'ct;\\-~4J:I~i"T"~; c:"~".', '<i'-:"': ~t:it-~"h~-:-"'i""P!~d'ti\';S'l~~1 Tbeodore A. Adler, Blq. UAGIR . ADLlR, P.C. 2331 Market street C.-p Bill, PA 17011 and Robert A. Swift, Slq, Denil r. Sheill, Ilq. KOHlI, SWI" . GRAF, P.C. 2400 One Reading Center 1101 Market Street Pbiladelphia, PA 19107-2924 AttorneYI for Defendant Ire ~ ~~ lJ.h/9' . .>!.~. LIFETIME PERIODICALS, INC. , I IN THE COURT OF COMMON PLEAS OF Plaintiff I CUMBERLAND COUNTY, PENNSYLVANIA , , v. I CIVIL ACTION - LAW I FRY COMMUNICATIONS, INC, , I Defendant I NO. 95-6238 CIVIL TERM IN REI DEFENDANT'S PRELIMINARY OBJECTION BEFORE OLER, J, OPINION and ORDER OF COURT Oler, J. Thie action ariees out of an agreement between a publisher of periodicals (Plaintiff) and a printer (Defendant), whereby Defendant was to print certain quarterly periodicals for Plaintiff. Allegedly, Defendant forgot to include bar codes provided by Plaintiff on the covers of the periodicals, and a financial loss resulted to Plaintiff, Plaintiff's complaint contains a count for negligence and a count for breach of implied warranties, For disposition at this time is Defendant's preliminary objection in the nature of a demurrer to the negligence count, Based upon the general rule that a breach of contract is not properly the subject of a claim for negligence, the preliminary objection will be sustained, STATEMENT OF FACTS The allegations of Plaintiff's complaint may be eummarized as ~~ \,;, ,~ follows I Plaintiff is Lifetime Periodicals, Inc" a Plorida corporation having a business address of 2131 Hollywood Boul.vard, Hollywood, Florida, Defendant is Fry Communications, Inc. , a Penneylvania corporation having II. business address of 800 w.st NO. 95-6238 CIVIL TERM Church Road, Mechanicsburg, Pennsylvania, Plaintift is the publi.her of two quarterly periodical. known a. "Money Line." and "Fell'8 U,S, Coin8." In AUgU8t of 1993, Plaintiff entered into an agreement with Defendant, a printing company "hold[ing] itself out a8 having special experti.e, knowledge and skill to print magazine8 for new..tand di.tribution,"l pur8ua.\t to which Defendant was to print the periodica18 for new88tand di8tribution over a three-year period. In order to print the cover8 for the8e magazine8, [Defendant] was provided with two pieces of film per magazine. One of the film8 contained the graphics for the cover and the other film contained the UPC code which was to be placed on the cover,2 Defendant inadvertently failed to print the bar code. on the periodical cover8, without 8uch code8, the magazine. could not be .old at newsstands, After discovering the error, Defendant failed to delay di.tribution of the periodicals to facilitate correction of the problem, Plaintiff 8uffered Hnancial 1088e8 in the form of reduced .ales a8 well a8 expen8e8 a880ciated with printing and affixing to the periodica18 uubstitute bar code 8ticker8, Count I of Plaintiff'8 complaint allege8 that Defendant knew or .hould have known that the periodical8 could not be sold without bar code., and 1 Plaintiff's Complaint, paragraph 4, Id" paragraph 8, 2 2 NO, 95-6238 CIVIL TERM that Defendant'. "negligence and careleuneBB'" in failin9 to print bar code. on the magazineB and failing to act upon discovery of the error reBulted in damageB to plaintiff in exceBB of $20,000,00. Count II allege. that Plaintiff waB known to be relying upon Defendant'. .kill, knowledge and experience in printin9 the 1llA9azines, It avers that in failing to print the bar code. Defendant breached an implied warranty of merchantability and an implied warranty of fitness for a particular purpose, resultin9 in damage. to Plaintiff in excess of $20,000,00, Defendant's preliminary objection in the nature of a demurrer contends that "Pennsylvania does not recognize a cause of action .oundin9 in ne9ligent breach of contract, "C It contends further that "pure economic injury is not compensable under a ne91igence theory, "5 DISCUSSION Statement of law, The standard for review of a demurrer to a complaint has been expresBed as follows I Preliminary objections in the nature of a demurrer will only be sustained in cases which are clear and free from doubt, that is, where it appears with certainty that the law will not permit recovery, In makin9 thiB determination, a court will consider all well- Id" para9raph 17, C Preliminary Objections of Defendant Fry Communication., Inc., para9raph 4, , 5 Id" paragraph 5, 3 ..~\-_! .., ....,...""^,'.",,.,. ,~">. NO. 95-6238 CIVIL TERM pleaded facts as inferences which are therefrom, true, including any reasonably deducible Koren v, Board of Directors, ___ Pa, Commw, ___, ___ n.4, 661 A.2d 449, 451 n.4 (1995) (citations omitted), "The test ,.. is not whether the applicable law is clear and free from doubt .", II Firing v, Kephart, 466 Pa, 560, 563, 353 A.2d 833, 835 (1976), The role of the court in ruling on preliminary objections in the nature of a demurrer is to determine whether or not the facts pleaded are legally sufficient to permit the action to continue. This is so whether the legal determination to be made is relatively simple or relatively difficult, Id. at 563-64, 353 A,2d at 8351 see 5 standard pennsylvania Practice 525:70, at 181 (1993). The distinction between tort and contract cause. of action i. both logical and of practical importance. First, the actions have traditionally served different purposes: Although they derive from a common origin, distinct differences between civil actions for tort and contract breach have developed at common law. Tort actions lie for breaches of duties imposed by law as a matter of social policy, while contract actions lie only for breaches of duties imposed by mutual consensual agreements between particular individuals, Iron Mountain Sec, Storage Corp, v, American special ty Foods, Inc" 457 F, Supp, 1158, 1165 (8,0. Pa, 1978), Second, different measures of damages have usually been 4 NO, 95-6238 CIVIL TERM associated with contract and tort claims, See Grode v, Mutual Fire, Harine and Inland Ins, Co" 154 Pa, Commw, 366, 623 A,2d 933 (1993). Relegation of a type of action to tort or contract often reflects a determination as to where, in a certain type of relationship, the risk of a certain type of loss should fall. See, e.g., REM Coal Co" Inc. v, Clark Equipment Co" 386 Pa, Super, 401, 563 A.2d 128 (1989) (purely economic loss in products liability case arising out of physical damage to product only held to give rise to contract action only),- . An example of this kind of analysis is contained in REM: First, tort law's concern for the protection of the public is greatly reduced in such circumstances. Since consumers of the product can insure against the loss of the product and its use, there is no need to provide them with the special protection of tort remedies, Second, damage to the product is "most naturally understood as a warranty claim." Warranties aim at maintaining product value and quality, which is all a consumer loses when the product is defective in a manner that results only in economic losses, Finally, warranty law is suited to economic loss cases because in such cases, the parties have the opportunity to have set the terms of their agreement regarding product value and quality in advance. The manufacturer may provide limited warranties and reduce the price, or give full warranties at a higher cost. The customer has the ability to negotiate over the terms of the bargain, If the product does not perform according to the agreement, the consumer is made whole by contract damages as limited by the terms of the agreement, This limitation of liability is an entirely appropriate brake on the manufacturer's liability in a case involving only the loss of the bargained for product, REH Coal Co" Inc, v, Clark Equipment Co" 386 Pa, Super, 401, 410- 11, 563 A,2d 128, 132-33 (1989) (citations omitted), 5 , ,. NO, 95-6238 CIVIL TERM Third, different collateral consequences have developed as a result of, and are dependent upon, the judicial distinction between tort and contract liability e,g" contractual liability exclusions in commercial insurance policies, See generally Hertz Corp. v, Smith, 441 Pa, Super. 575, 657 A.2d 1316 (1995), The Pennsylvania Supreme Court has cautioned against authorizing tort recovery for contractual breaches I To permH a promisee to sue hiB promi!lor in tort for breaches of contract inter Be would erode the usual rules of contractual recovery and inject confusion into our well settled forms of actions, Most courts have been cautious about permitting tort recovery for contractual breaches !lnd we are in full accord with this policy. The methods of proof and the damages recoverable in actions for breach of contract are well established and need not be embellished by new procedures or new concepts which might tend to confuse both the bar and litigants, Gla.er v, Chandler, 414 Pa, 304, 308-09, 200 A,2d 416, 418 (1964) (citation omitted); Bee Health BenefitB Management, Inc, v. Pilot Air Freight, Inc" No, 94-7084 Civil Term (Cumberland Co, July 14, 1995) (Hoffer, J,), Notwithstanding this admonition, it must be recognized that the reluctance of courts to permit tort recovery for contractual breaches II is not ironclad, II Grode v, Mutual Fire, Marine and Inland Ins, Co" 154 Pa, Commw, 366, 370 n.3, 623 A,2d 933, 935 n.3 (1993), It can not be said, for instance, "that tort claims can never arise from contractual service relationships." Id. at 371, 6 HO. 95-6238 CIVIL TERM 623 A.2d at 936 (emphasis added).' A good general rule on this subject appears to the court to have been provided by the Superior Court in Bash v, Bell Telephone Co., 411 Pa, Super, 347, 601 A,2d 825 (1992)1 [I] t is po..ib1e that a breach of contract also gives rise to an actionable tort. To be construed as in tort, however, the wrong ascribed to defendant must be the gist of the action, the contract being collateral. A claim ex contractu cannot be converted to one in tort simply by alleging that the conduct in question was wantonly done, Id, at 355-56, 601 A,2d at 829 (citation omitted) (emphasis omitted) , In Bash, the Superior Court upheld a lower court's dismiss.l of . negligence count against a company which omitted plaintiff's advertisement from a phone book, "The obligations of the parties in the instant dispute are a matter of private contract law," the Court stated, Id. at 356, 601 A,2d at 829. The court discerned no need to implicate "the larger social policies embodied in the law of torts." Id. at 357, 601 A.2d at 830, In the case sub judice, several factors support Defendant's position that Plaintiff's action should not proceed on a negligence b.sis, First, the wrong ascribed to Defendant - failure to print , For instance, "special non-contractual duties of professionals such as doctors, lawyers and architects enforced by tort law were created in part to make up for the lack of sophistication and bargaining power of those seeking these professional services." PPG Industries, Inc, v. Sundstrand Corp., 681 F, Supp. 287, 290 (W,D, Pa, 1988), 7 i'"' NO. 95-6238 CIVIL TERM a bar code supplied by a publisher on periodical covers and failure to facilitate correction of the problem when it was discovered - is a matter involving the parties express or implicit understandings, the contract between them can not be characterized as merely "collateral" to the alleged wrong, Second, the duty allegedly breached by Defendant wae not one imposed by law as a matter of social policy, Finally, the measure of damages applicable to contract actions seems more appropriate than that applicable to tort actions in a case such as this arising out of an agreement between a publisher and printer, involving no physical harm, property damage or injury other than economic loss. Por theee reasons, the following order will be entered I ORDER OF COURT AND NOW, this 3ruJ..,; day of April, 1996, after careful consideration of Defendant's preliminary objection in the naturs of a demurrer, and for the reasons stated in the accompanying opinion, the preliminary objection is SUSTAINED and count I (negligence) of Plaintiff's complaint is DISMISSED, PLAINTIFF is GRANTED 20 days within which to file an amended complaint if it cares to do so to supplement its contractual claim, Defendant shall have 20 days from service of any such amended complaint, or 20 days from the expiration of the time for filing an amended complaint if none is filed, to file a responsive pleading, BY THE COURT, ,al !), ~--'-J- c/t:J~ J, Wesley Oler, dr" J, ~. 1./<.,., 8 NO. 95-6238 CIVIL TERM Jennifer A, Kline, Esq, Paul W, Minnich, Esq, BARLEY, SNYDER, SENFT' COHEN 100 Bast Market Street P.O, Box 15012 York, PA 17405-7012 Attorneys for Plaintiff Thsodore A. Adler, Esq, RBAGBR , ADLER, P.C, 2331 Market Street Camp Hill, PA 17011 and Robert A. Swift, Esq, Deni. F. Sheils, Esq, KOHN, SWIFT' GRAF, P,C. 2400 One Reading Center 1101 Market Street philadelphia, PA 19107-2924 Attorneys for Defendant Ire 9 2~ q.>"~rAt:"-{~ ,.~:-'/_- - -", ~";. 'II ," . , ;",:<:, <:~~. {,.,.'."'. ;~ ';'.:;'i ',:::; , . . ~'I' '1'" :~ . ) _",_,-:,,' t; f i_'~<;' .- .' ., t "l'~'i" ..... {Ii''- - ,'., ~, . 'U'" . 'L.-L' .' .......: :',.' :"""1",,-;'01""'" "1"-" : _. . - -.' > ',' - .-,: ".""" " . II ,. , - - -,- " ":'f'i" . "..:I" ".. . Q. .f::; ::i _ '~::'J.... , '.J,i'l -~-, ,~)~ ().;., ' .,..... . ,co- '-'~.",:~ . .., to. N .J"'; [6:<' " fp . dU; l3 ., . . t. ~.. . ~~ I 'g~ . r . Ii B I ~ E i II ! !i ~~ i I' I ','. ~i I,f',r'i 11111' ',:~ ! I :,;::',i .', ,,'<, ~-,;; ;:,~:-.'.<{{~~ . ~,,': :t:.c~~i . ,.,1__ '__"F,.<>!':.>'ol , " :;\-,~',~ :~-,~':;z~f~::.t~~~1 , ., . . , '~:' !W';;,'1':""~,;~i ,~",~"f!~_,: ;,':'-' '" :\-;lil -t, \~; t;~ , . JAlC/31163,1//lI52196 , , 1 ) IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW UFETIME PERIODICALS, INC., Plaintiff : No. 95-6238 Civil Tenn vs. FRY COMMUNICATIONS, INC., Defendant REPLY TO NEW MATTER AND ANSWER TO COUNTERCLAIM REPLY TO NEW MATTER 32-41. Denied. The averments of paragraphs 32, 33, 34, 35, 36, 37, 38, 39, 40, and 41 constitute conclusions of law to which no response is required and are therefore deemed denied. 42. Denied. The avennenlS of paragraph 42 constitute conclusions of law to which no response is required and are therefore deemed denied. To the extent a response may be required, it Is specifically denied that any amount is due and owing from Plaintiff to Defendant. WHEREFORE, Plaintiff, Lifetime Periodicals, Inc., demands judgment against Fry Communications, Inc., as set forth in its Complaint. ANSWER TO COUNTERCLAIM Count I - Breach of Contract 43. Plainlilf incorporaleS by reference as though set forth in full the avalllelltl of paraanpbI 1 through 31 of its Amended Complaint and paragraphs 32-42 above. JAKi30242.llOmll6 44. Admitted in part; denied In part. It is admitted that in or about the late lummer or fall of 1993 Fry and lifetime entered into an agreement whereby Fry agreed to print certain publications for Lifetime. It is denied that the Proposal dated December 17, 1993, attached u Exhibit A to Defendant's Counterclaim constitutes the agreement between the parties, and to the contrary it is averred that the agreement entered inlo by the parties consisted of oral communications and the course of dealing between the parties. 45. Admitted. It is admitted that Fry printed three issues each of "Money Lines" and "Fell's U. S. Coins." 46. Denied. After re~nable investigation Plaintiff Lifetime is without knowledge or information sufficient 10 form a belief as to the truth of the averments of paragraph 46 of Defendant Fry's Counterclaim; the same are therefore denied and strict proof thereof is hereby demanded. 47. Denied. By virtue of Fry's violation of the agreement between the parties as set fonh in Plalntiff's Complaint, no sums are due to Fry from Lifetime. Count II - Account Stated 48. Plaintiff incorporates by reference as though set forth in full the avernietD of pII'III'lIIlbI 1 through 31 of its Amended Complaint and paragraphs 32 through 47 above. 49. Denied. After reasonable investigation Plaintiff Lifetime is without know\edp or information sufficient to form a belief as to the truth of the averments of paragraph 49 of DefendaDt Fry's Counterclaim; the same are therefore denied and strict proof thereof is bereby ~"""", SO. Denied. To the contrary, on or about April 28, 1994, Plaintiff notified Det'eDduIl of ita breach under the agreement and sought reimbursement of its damages. 2 " _:,-_~~,~:,!..l;'-,j'~)~'..c.Qoj~4-~:~..~~-',,;:_' . _,_~-".....~,L\~'- ~:;:!:': '':'.':'-'.'' ,"",,__;;."~.'''~*' .-~..~'"'-~-~""-""''''''''''~''',","!f'' JAKI3024UiOS2196 51. Denied. To the conttary, the sums due Plaintiff on account of Def'endam Fry's violations of the panlca' agreement exceed the sum of $2,279.82. WHEREFORE, Plaintiff, Ufetlme Periodica1I,lnc., demandsjud&ment in Ita favor IIIIlqainst Defendant, Fry Communications, Inc., plus interest and COlts of suit. NEW MATTER 52. Count I of Fry's Counterclaims falls to state a cause of action upon whlch relief may be granted. 53. The relief sought by Defendant Fry in subparagraph (c) of ita ad damN.m clauae Ia prohibited by ststute and/or case law. WHEREFORE, Plaintiff, Ufetime Perlodicals, Inc., demandsjudament lnits favorlllllllp'- Defendant, Fry Communications, Inc., plus interest and costs of suit. SNYDER, SENFf .t COHEN M~/ r A. Kline, Esquire Su Court No. 65950 100 East MarIcet Street P. O. Box 15012 York, Pennsylvania 17405-7012 (717) 846-8888 3 , . , JAX/J02AUIlmlN ' ' I, Dolll1d I.enIII, PmId'Dl of Itlmt Perlodkal., Inc.. tbe PIalDdt1' btnIu, UIll u IUCh otlk:lr bt\JII duly IUlborIztd to do '0, v Ify that die facti set lonh in tbIllon.olDl Rlply to New Matter UIll Amwer to CounterCllIm with w Matter.... trIIt UIll~~ to till bat of my lmowledp, iDIormatlon UIll belief. 1 undentlllll thsl false .wcmen1I benlln .... IIIIde IUbJect to tbe peIII1da of 18 PI.C.S.A. f49(M nl.tiq to UIIIW fals1flcatlOD to &II1IIDdtIe.. Dar8: !J"' ~,~~ ~~- '" IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW No, 95-6238 Civil Term LIFETIME PERIODICALS, INC., Plaintiff/CounterClaim Defendant, v, FRY COMMUNICATIONS, INC" Defendant/Counterclaim Plaintiff, DIFIHDANT/COUNTERCLAIK PLAINTIFF FRY COKKUHICATION8. INC,'B REPLY TO NIW KATTIR Defendant/Counterclaim Plaintiff Fry Communications, Inc, ("Fry") hereby replies to the New Matter of Plaintiff/CounterClaim Defendant Lifetime Periodicals, Inc, ("Lifetime") as follows: 52. Denied, The allegations contained in this paragraph constitute conclusions of law to which no response is required, 53. Denied. The allegations contained in this paragraph constitute conclusions of law to which no response is required, WHEREFORE, defendant/counterclaim plaintiff Fry respectfully requests that the Court enter judgment in its favor and against plaintiff/counterclaim defendant Lifetime as follows: (a) dismissing with prejudice the claims asserted against Fry in the Amended Complaint; (b) entering judgment for Fry and against Lifetime on l Fry's counterclaims; (c) awarding Fry the costs and disbursements of this ':.) ,,-; ,-.lj , . ._~.....,. - .' .. suit, including prejudgment interest and reasonable attorney's tees; and (d) granting Fry Buch other relief as the Court deems just and proper, DATE: June 13, 1996 R..P.C'f~Ubmi"." The ore A. Adler, Esqu re REAGER & ADLER, P.C, 2331 Market street Camp Hill, PA 17011 (717 763-1383 BY: BY: Ro ert A, Sw ft, Denis F, Sheils, Esquire KOHN, SWIFT & GRAF, P,C, 2400 One Reading Center 1101 Market Street Philadelphia, PA 19107-2924 Attorneys For Defendant/Counterclaim Plaintiff Fry Communications, Inc, -2- . .. ... ~"r.r~~. o. ...vr~. a.D ~, thi. 13th d.y of Jun., 1996, I h.r.by v.rify that I have Cllluaed e true and corr.ct copy of the foregoill9 dOCUMnt to be pIeced in the U,8, ..il, fir.t c1..., po.taq. pr.paid and .ddr....d a. follow.: Jennifer A. Klin., B.q. Paul W, Minnich, Z.q, Barley, Snyd.r, Senft , Coh.n 100 B..t Market Str.et P.O, Box 15012 York, PA 17405-7012 ,', .' " , i .' r- , fli. t,',' (~_ I f.'; fJ:i' ~). filf t~ ; , . ;,.. . ',,1 " " . ,. , ,'..- t..:.,;) :,.!moDOU A, ADLQ I - 1 .'.11": '1 '" 'i~ " .~ 8, 'iJ' :...~.'Ih I ;: IU i . "10.... . ~_ ~''fl'~',_jo,..__...~~""..''':";,-~,,-__",,L:>:.':1~1.V;;}~!tt$-4 ,"" ~~.!;>."H'+";'~"~11'<)~~'Ift-- ~ ~e: ~,%... !Ii LU,- ='_. uz-O;.r. ,.. -(:'1(,).... '" t: ~"",. o.....;z.-..J co I (":.4t~ l2tY ..J% ~a ~f.;z c:a -' hi Q.IW N ~.. r_Z;\1.. ::> = '0" :z: M " a ,"" 8 i ~ '" ffi III 8 B Ill! " ~ ~ ! ~ f ~ g " ! S I I , l> E . . .. . . t~MI,.'lUll.lj.. 1.,10"" tll "10_ ue.1'\ltO,l)l"l.WIll'l9ti"ll1l"1'f .';:r" ,:",r. :'\;1 ;_:i\;"~ ..,~' , ":,~'!';,, ;;[... ;->:::~:'!t 4 i! -~~ ':l'~-' 'hl"lF" '. ~ ;~'. ;~ I ,A~ ';~t "'''ie' '" ,:j:t~j '! :} _~.~ .,~..". __............'.0.. l<.. : .. 1..,. JAKlI809':11229' i" , , . IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW LIFETIME PERIODICALS, INC., Plaintiff No. 95-6238 Civil Term vs. FRY COMMUNICATIONS, INC., Defendant COMPLAINT ? r I AND NOW,this '), day of November, 1995, comes the Plaintiff. Lifetime Periodicals, Inc., by its allomeys, Barley, Snyder, Senft & Cohen, and files the following Complaint: 1. Plaintiff, Lifetime Periodicals, Inc. (hereinafter referred to as "Lifetime"), is a Florida corporation with an address for purposes of doing business at2131 Hollywood Boulevard, Hollywood, Florida 33020-6750. 2. Defendant, Fry Communications, Inc. (hereinafter referred to as "Fry"), is a Pennsylvania corporation with an office for purposes of doing business at 800 West Church Road, Mechanicsburg, Pennsylvania 17055. 3. Plainliff is a magazine publisher and, in 1994, published magazines which included "Money Lines" and "Fell's U.S. Coins." 4. Fry is a prinling company that holds itself out as having special expenJse. knowledge and skil1 to prinl magazines for newsstand distribution. S. In Augus11993, Lifetime and Fry enlered into an agreement for the printing of "Money Lines" and "Fell's U.S. Coins." . JAKlI809'lI1219' 1.;.,' f;.. It" ., .. , , , , 6. Pursuant to the agreement, Fry was to prinl quanerly issues of Ihe aforementioned magazines for Plaintiff, for newsstand dislribution over a Ihree year period. 7. On or about April 27, 1994, Fry prinled one issue of "Money Lines" and one issue of "Fell's U.S. Coins" for Plaintiff. 8. In order 10 print the covers for these magazines, Fry was provided with two pieces of film per magazine. One oflhe films contained the graphics for the cover and the other film contained the UPC code which was to be placed on the cover. 9. Although Fry was provided wllh Ihe film containing Ihe UPC code, Fry negligently 10. Magazines for newsstand distribution such as "Money Lines" and "Fell's U.S. Coins" failed to print the UPC code on the magazine covers. cannot be sold without UPC codes. 11. After Fry printed the magazines withoUI the UPC code, Fry forwarded the magazines to Clark Distributing Company, who discovered the error and notified Fry. 12. Upon being informed oflhe problem, Fry negligently failed t(j lake a!lYact~l.mect .-.... " -- -.,- '-./ the problem or to prevent distribution of the magazines 10 approximalely three hundred wholesalers. 13. As a result of Fry's conduct, Plainliffhas suffered loss, harm and damage which consists of the cost to print stickers containing the UPC code, the coslto mail the UPC stickers to wholesalers and the labor cost associated with affixing Ihe UPC stickers 10 the magazines. In addition, Plaintiff has suffered losl sales and lost profils as a result of Defendant's actions. 2 ~ , . . , .~" '. f' ,'_ _ ",~"".' ............ ',: -..-,;... _,-,.;,".~_.."i;_4ih..!c1 JAKlI8095h 12195 ' COUNT I LIFETIME PERIODICALS, INC. v. FRY COMMUNICATIONS, INC. NEGLIGENCE 14. The allegations contained in paragraphs Ilhrough 12 are incorporated herein by 1~fl:.e.IICcld. IS. As an experienced printer of magazines, Fry knew or should have known that the magazines could not be sold without UPC codes being printed on them. 16. Fry owed a duty to Lifetime which Fry breached by failing to print UPC codes on said magazines and by failing to take any action to prevent distribution of said magazines upon learning that the UPC codes had not been printed on the covers. 17. As a direct and proximate result of Fry's negligence and carelessness, Plaintiff has sustained damages in an amount in excess of $20,000.00 as described above. WHEREFORE, Plaintiff respectfully requests this Counenter judgment in its favor and ...Iqq Defendant in an amount in excess of $20,000.00, plus interest and costs of suit. COUNT II LIFETIME PERlODCALS, INC. v. FRY COMMUNICATIONS, INC, BREACH OF WARRANTY 18. The allegations colllalml in paragrapm IIhrough 17 are incuporalrd berdn by ....-..d. 19. Fry is a printer that holds itself out as having special expertise, Imowledae and IkUl to print magazines for newssland dlslribullon. 20. Fry knew the purpose for which it was printing the magazines for Plaintiff. 3 JAKII809,fIl119' . ., .. 21. Fry knew that Plaintiff was relying onFry's skill, knowledge and experience in printing the magazines. 22. By failing to print UPC codes on the cover of the magazines, Fry breached the implied warranty of merchantability, 23. By failing to print UPC codes on the cover of the magazines, Fry breached the implied warranty of fitness for a particular purpose. WHEREFORE, Plaintiff respectfully requests this Court enter judgment in its favor and against Defendant in an amount in excess of $20,000,00, plus interest and costs of suit. BARLEY, SNYDER, SENFT & COHEN By: {/ l;;;/J.!:f;;~ Supreme Court No. 65950 100 East Market Street P. O. Box 15012 York, Pennsylvania 17405-7012 (717) 846-8888 4 JAKlI80951t 12295 . CERTIFICATE OF SERVICE 2'}1.,1 AND NOW, this t day of November, 1995, I, Jennifer A, Kline, Esquire, herebycenify that I have served the within Complaint by depositing Ihe same in the United Slates mail, postage prepaid, at York, Pennsylvania, addressed as follows: Fry Communications, Inc. 800 West Church Road Mechanicsburg, PA 17055 BARLEY, SNYDER, SENFT & COHEN By 11 J--_tLf/../// 'kkifer A. Kline, Esquire Supreme Court No. 65950 100 East Market Street P. O. Box 15012 York, Pennsylvania 17405-7012 (717) 846-8888 ," ~:. '.. 11, "'1"1: ; 'I"' " ::.:i ,. . lJ. "I'~I',.. f.,' ;. . r.: '.~ II ,<. . "."'"..'0".'............ ""hi UU_UD,)I\wf'ltlwulll"111" . ,. . ~i MI a ~ .;! H I 8 ~ E i u I ! ! ~ H UI i:~~ I . . @ I .. ai ! .. 51; ,:.... ., :'- ,'~:. :,:, - ,-,.'-'-" <':,)..~;~::j;; i ~:,.;:!);';i;;;' ~ ,:/,<;)t'j0~F i .. . - :.. ,:.~ 'i.; :!t! "':':',.;...{1~:~ JI</II09SIOI/116 the UPC code, mail the UPC stickers to wholesalers and pay individuals to affix the UPC stickers to the magazines. Plaintiff asserts two causes of action against Defendant-negligence and breach ofwarranly. Contrary to Defendant'l assertion in its brief, the negligence cause of action is not one of nonfeasance but rather one of misfeasance. That is, Plaintiff asserts Fry was negligent in performing its duties to Plaintiff.' Defendant filed Preliminary Objections to Plaintiffs Complaint asserting that Plaintiff may not proceed on Ihe negligence theory. Plaintiff files this brief in response to Defendant's Preliminary Objections . 0, COUNTERSTATEMENT OF ISSUE PRESENTED A. Whether Plaintiff has stated a cause of action in negligence against Defendant? Suggested answer in the affirmative. m, ~GIIMENT A., Pllllntilf hulltated a rause of action 10 -II~ ......Ina Defeadllnt, A preliminary Objection in the nature of a demurrer challenges the pleadings u faUlDa to set forth a cause of action upon which relief can be granted under any theory of law. BinlwllqlH!l' v. Levv, 311 Pa.Super. 41, 457 A.2d 103 (1983). A preliminary objection asserting legallnsufflcleDcy of a pleading admits all well-pleaded facts and all reasonable inferences. JCeirs v, Weber Natlnnal Stores. Inc., 352 Pa.Super. Ill, 507 A.2d 406 (1986). All doubts are to be resolved apinIt 1M moving party by overruling the objection, Aelna ElectrQDlati~ Co. v. Jenkins, 335 PI.SUper. 283, ''The distinction between misfeasance and nonfeasance and the relevance to thillCtion are discussed more fully in the argument section. 2 J.IlII_I01II96 In 1Wb, the court stated thaI in order to be considered a tort action, the wrong ascribed to the Defendant must be the gist of the action, rather than the breach of the contract. The court held that the Plaintiff could not pursue a negligence Iheory since "[t]he parties' obligalions are defined by the terms of the contract and not by Ihe larger social policies embodied in the law of torts." 1Wb, 411 Pa,Super at 356-57, 601 A.2d at 829-30. As discussed more fully beloW,the court in IWh was only dealing with a situation where there was a written conlract between the parties that defined their obligations. In~, the Superior Court followed IWb and stated that the difference between contract and tort actions is that "the latter lie from the breach of duties imposed as a matter of social polley while the former lie for the breach of duties imposed by mutual consensus." Ill., 663 A.2d at 757. Importantly, those courts that have fo\1owed Dub, have all involved written contracts that have defined the parties' obligations. In B.ub, the parties entered into a written contract on May 13, 1990 and it was this contract that the ('ourt held governed the parties' relationship. In~. the parties entered into a nullllng home consulting agreement. SigniflC8lll1Y. in ~cDoIc v. Bell T~~ Co, of Pa" ___ Pa.Super. ---,656 A,2d 933 (1995), where the contract between the partIet expired and was not renewed, the Court permitted the plaintiff to proceed on a negligence theory since lID contract governed the relationship and set forth the parties' obligations. In the instant case, Plaintiff has not asserted a cause of action for breach of contraCt and has not a\1eged that there was a written contract between the parties. Thus. takinI u trUe the allegations in Plaintiffs Complaint, there are no allegations that there il a writtencontraet tbatdcfinel the terms of the parties' obligations. ~,lt.l.., B.ub. As in McDole, the reuonlna in IIIIb is inapplicable; and Plaintiff is permitted to pUlllue a negligence cause of action. Moreover, it is not even clear whether Pennsylvania courts IIl:lmowJedae tbe ......k:daG on pUlllulng a negligence theory, The Supreme Court has not addressed the issue. In n.n..IA v. .... 4 ; . .,~ ~ .,' .;'.";,~ ...i~j JJI./I_IOlZ", fire Ins, Co" 154 Pa. Commw. 366, 623 A.2d 933 (1993), the Commonwealth Court thoroughly discussed the state of the law and refused to dismiss a negligence cause of aclion finding that "there is simply too much Pennsylvania case law allowing tort recovery in contractual relalionships to allow a molion to dismiss a claim. . . ." 111., 623 A.2d at 936. !JrQlk is mosl analogous to this case since both involve the rendition of professional services, The court in 0I2lk stated that "a tort claim in a contractual relationship for services should not be dismissed at an early stage of proceeding prior to the production of evidence. !JrQlk, 154 Pa,Commw. 366,623 A,2d at36. Thus, the Pennsylvania appellate courts are split as to whether there is a restriction under Pennsylvania law in pursuing a negligence theory. Defendant also asserts that Plaintiff may not maintain a negligence claim since Plaintiff has not "suffered any legally cognizable harm or injury." Defendant contends that because Plaintiffs are seeking only economic damages, they may not proceed on a negligence theory. Defendant cites to REM Coal Co.. Inc. v, Clark EoulpmentCo., 386Pa, Super 401 , 563 A.2d 128 (1989), in support of this proposition. REM Coal is inapplicable in this situation, amM Coal was a product liability case; its holding is limited to a product Iiabilily case. The court in REM Coal held that there is DO product liability cause of action, either in negligence or strict liability , when only the product itself is damaged and, therefore, the injury is purely economic. As the court In REM discusses, "the goals of tort theories of recovery are not implicated in a product malfunction case" where only the product Itself is damaged, Id.. 563 A, 2d at 129. The court discusses in detail the rationalcfor such al1m1tstlon in the Droduct malfunction selliOlz. REM Coal does not apply and has not been extended to a case, such as this one, where the plaintiff is alleging that the defendant was negligent in rendering a profeslional service. gag v. Mutual Fire Insurance Co" 154 Pa, Commw. 366, 623 A,2d 933 (1993). The court In gag 5 JIlIIIOiIIOIZ116 CERTIFICATE OF SERVICE AND NOW, this 28th day of February, 1996, I, Jennifer A. Kline, Esquire, hereby certify that I have served the within Brief in Opposilion to Defendant's Preliminary Objeclions by depoliting the same in the United States mail, postage prepaid, at York, Pennsylvania, addressed u follows: Theodore A. Adler, Esquire Reager &. Adler, PC 2331 Market Street Camp Hill, PA 17011-4642 , BARLEY, SNYDER, SENFT &. COHEN ByQ...tLJAAL Supreme Court No. 65950 100 East Market Street P. O. Box 15012 York, Pennsylvania 17405-7012 (717) 846-8888 .~ t ;i , " .> . '? , , " . I. n. COD" O. COIDIOII .LD8 O. CUUDLaW COUll'l'Y, .....YLVUI. CIVIL .C'l'IO. - LaW .0. 'S-la31 civil "era v. I I I I I I I I I LI.~I" ...IODlcaL., I.C., .1.bUffs, RV ClOIIIIVIIlca'1'IOII', I.C., DefeIl4ut.. DDDDaII'l'" IIDOIlUDUII O. LaW I. .ulIOa'1' O. 1'1" .a8LIIlIIlUY OBJ8C'l'IO.' Defendant, Fry cOllllllunication., Inc" ("Fry") re.pectfully .ubait. thi. memorandUll of law in .upport of it. preliminary objection. to Count I of the Complaint, Fry's preliminary objection. pre.ent the i..ue. a. to whether a cau.e of action for ne;ligence can be a..erted where a contract govern. the relation.hip of the partie. and whether pure economic injury i. compen.able under a negligence theory, I, FACTS For purpo.e. of thia motion only, the allegation. of plaintiff'. co.plaint, taken a. true, allege the following, plaintiff, Lifeti.e Periodical., Inc. ("Lifetime") and Fry entered into an agreement in August, 1993 for the printing of two magazine. published by Lifetime I "Money Line." and "Fell'. U,S, Coins", complaint !5, Pursuant to thia agree.ent, Fry wa. to print quarterly issue. of these magazine. for new..tand di.tr.ibution over a three year period, ~ !6, In order to print ~ the cover. tor the.. magazin.., Fry was provided with two pi.ces ot tila per lIagadne, One ot the tilm. contained the graphic. tor the cover and the other tila contained the UPC code which was to be placed on the cover, IlL. '8, Magazines tor newsstand distribution .uch as "Money Lines" and "Fellls U,8, Coins" cannot be sold without UPC codes, IlL. '10, When Fry printed one ot the issues at "Money Lines" and on. at the is.ue. at "Fell'. U,8, Coins", it tailed to print the UPC code on the lIagazine covers, IlL. "7 and 9, Atter Fry printed the lIagazines without the UPC code, Fry torwarded the magazines to Clark Distribution Company, who discovered the error and notified Fry, IlL. '11, upon being informed of the problem, Fry failed to take any action to correct the problem or to prevent distribution at the lIagezine. to approxillately three hundred whole.aler., IlL. '12, A. a result at Fry'. conduct, Litetime has allegedly suttered economic losses, including lost sales and lost profits, IlL. '13. Litetime's complaint asserts two causes of action. Count I alleges negligent nonfeasance, Count II alleges breach of the implied warranties of merchantability and fitness for a particular purpose, II, ARGUMENT Count I of the complaint alleging negligent nonfeasance on the part at Fry should be dismissed pursuant to Pa, R, civ, p, 1028 (a) (4) because it tails to state a claim upon which relief -2- .' can be granted, Pennsylvania does not recognize a cause of action for negligent breach of contract, particularly when it is in the nature of alleged negligent nonfeasance, Lifetime 6imply cannot expand its breach of contract claim into a tort claim, Furthermore, pure economic injury is not compensable under a negligence theory, 1, In Light of Their Contractual Relationship, Lifetime Cannot state a Claim in Negligence Aaain.~ Frv Lifetime's negligence claim is a transparent attempt to transform what must be, if it is anything, a claim sounding in contract into a claim sounding in tort, Lifetime's complaint alleges an agreement between Lifetime and Fry, Complaint !5, In light of this contractual relationship, Lifetime cannot state a claim in negligence since the law is clear that the law of contracts, not tort, governs the parties' obligations to one another in respect to conduct covered by a contract between them, Glazer v, Chandler, 414 Pa, 304, 200 A,2d 416, 418 (1964), Principles of negligence do not come into play and any alleged "negligence" of Fry is thus irrelevant, particularly so when the allegations are in the nature of negligent nonfeasance, 1 WlX CorD, v, Prime LeasinG, Inc" 988 F,2d 433, 439-40 (3d cir, 1993); ERCO ImDort~rs v, Halsabrunn, 500 F, supp, 152 (E,O, Pa, 1980) (Lord, J,); Iron Mountain Security storaGe CorD, v, American 1 specifically, Lifetime alleges that Fry negligently "fall[ed] to print UPC codes on [the] magazines and fall[ed] to take any action to prevent distribution of said magazines upon learning that UPS codes had not been printed on the covers," Complaint !16, -3- " .. Snecialtv Foods. Inc" 457 F, Supp, 1158, 1166 (E,D, Pa, 1978); Bash v, Bell Telenhone Co" 411 Pa, Super, 347, 601 A,2d 825, 829- 30 (1992); standard pineline coatina Co. v, Solomon' Teslovich. ~, 344 Pa, Super, 367, 496 A,2d 840 (1985), Accordingly, Count I of the Complaint should be dismissed with prejudice,2 2, Lifetime's Negligence Claim Must Be Dismissed Since, As a Matter of Law, It Has Not SUffered Anv Leaallv Coanizable Harm or Iniurv Lifetime's negligence claim must also be dismissed since, as a matter of law, it has not suffered any legally cognizable harm or injury. The elements of a CQuse of action for negligence are: (1) a duty; (2) a breach of duty; (3) a proximate causal connection between the negligent conduct and the reSUlting injury; and (4) actual 108S or damage, Moreno v, South Hills Health System, 501 Pa. 634, 642, N,J, 462 A,2d 680, 684, N,5 (1983); .u A1G pittsburah National Bank v, Perr, 431 Pa, Super, 580, 637 A,2d 334, 336 (1994), Lifetime's complaint alleges, at most, pure economic harm, ~ Complaint !13, Pure economic injury is not compensable under any negligence theory, REM Cool Comnanv v, Clark Eauinment, 386 Pa, Super, 401, 563 A.2d 128 (1989) (en bane); Readv Foods 2 It should be noted that in Grode v, Mutual Fire Ins, Co" 154 Pa. Commw. 366,623 A,2d 933 (1993), the Commonwealth Court did not, on preliminary objections, dismiss a tort claim based on contract, This anomalous case is contrary to the decisions of the Pennsylvania Supreme and Superior Courts and the federal courts cited in the text, Furthermore, even the court in Grode expressed serious misgivings about its decision and indicated that it may very well decide otherwise later in the proceedings, 623 A,2d at 936, -4- .~ CIRTIFICATI OF 81RVICI AND NOW, this 12th day of January, 1996, I hereby verify that I have caused a true and correct copy of the foregoing document to be placed in the United states mail, first class, postage prepaid and addressed to plaintiff's counsel as follows: Jennifer A, Kline, Esquire Barley, snyder, Senft & cohen 100 East Market street p,O, Box 15012 York, PA 17405-7012 A, Adler to" PRAECIPE FOR LISTING CASE FOR ARGUMENT (tlIst be typewritten and subnitted in dUEl) j,.~te) TO THE PROTHONOTARY OF CUMBERLAND COUNTY: Please list the within matter far the next Ar9J'nent 0Jurt. --------------------------------------------------------------------------------------- 0 .') ~ ~~ 0' -., 'T!t'i i ~ - J I'K.> .1 iTI .:...J f'o) "'::-1 ><l:- :-)', ~ I''; Ij~ I '2t.-; ?:: _,l-,\ :- ; ):l ;-:(, ;~..C) t~~t.::l - '-'."111 ~'L'; U -. .. ,-I ~~l 1-- - ~.q -. U1 .... CAPTION OF CASE (entire caption /IIJIlt be stated in full) LIFETIME PERIODICALS, INC. (Plaintiff) VB. FRY COMMUNICATIONS, INC. ( Defendant) No, 95-6238 CivU Term 19 1. State matter to be argued (i.e" plaintiff's llDtion far MW trial, defendant'. dBrw:rer to ~laint, etc,): Defendant's Preliminary Objections 2, Identify counsel who will argue case: (a) far plaintiff: Address: Jennifer A. Kline, Esquire Barley Snyder, Senft. Cohen 100 East Market st" p, O. Box 15012 York, PA 17405-7012 (b) for defendant: Address: Theodore A. Adler, Esquire Reager . Adler, PC 2331 Market Street Camp Hill, PA 17011-4642 3. I will notify all parties in writing within hIo days that un. c:-. "- been listed for argunent, 4, Ar'gunent 0Jurt Date: March 6, 1996 ~.'. Doted: January 17, 1996. J" . JAKlII09'IOI1896 CERTIFICATE OF SERVICE AND NOW, this Ju. day of January, 1996, I, Jennifer A. Kline, Esquire, hereby certify that I have served the within Praecipe by depositing the same in the United States mail, postage prepaid, at York, Pennsylvania, addressed as follows: Theodore A. Adler, Esquire Reager & Adler, PC 2331 Market Street Camp Hill, PA 17011-4642 BARLEY, SNYDER, SENFf & COHEN Bye] (JA,Ak 1eiiiIifer A. Kline, Esquire Supreme Court No. 65950 100 East Market Street P. O. Box 15012 York, Pennsylvania 17405-7011 (717) 846-8888 ~"HEHlIT"; IiETlJlitl - Ii EI il 11.1.1, CASE NOI 199s-mG2JB r COMMONWEALTH OF PENtlSYLVANIAI COUNTY OF CUMBERLAtlP bIFETUiIL.EfJ!1OJ)I~:"l,~- J W V'- ;:.>. ERY CO.!:!"UN_L';;!\TLOllli-.)H~:_-- -1illLSTl1LRL.!1~R.I;:---- __.______ . ___._________' Sh<,riff 01- D"puly Slwl'iff of CUMBERLAtlD CDunt.y, I','nllnylvuniil. who !lpinq dilly "wor-n nccDrdtn~' to law. ,"'Y3. ltw wtl.hlll WJUI_QL_~!.l_I1!1..9.11~_..-------- upon _.fltLC9!1!1ill!.I..\::AUQJJs~lU~: ----.. -------- P'- ...au served ---~.. ...-.----..-.........-.--- lh" . 0- ___~ __,~._ ,.. ..-..--. .~.-.-.-._' .--.------- rlp_~~~,I~')gL.._..~_. _. ..._____K..__..__, defendant. al 9J I : 00 I!UUW;, on Uw .":_)~!t ~J;];' n! 192.~ at _..Q.t2gl__l'1j::SI..c!!.!JR~!L flilMJ_ ------ ..-.-------------- t1ECHANICSBUR.Q., I:'A 170~'~1______ .__ _______________________. I~VJ,!!1j::R_L,f\llP County, P<,nnf;Y I ""n1 '" by hand I 11'.1 1.' t1fl_1i'i .JLCHl.E!1I.SL rQtITl1_Q1_L.J::JUt!J) A[JULT III CHARGE _________.___ . .__.__.~ ~_._--_..- -.---, --"-'---'--'---~' ----_.- _..-_._-~._. --.-------.-.. a true and at t.""bod copy "f th,,_!lnJ.'[--gL,~Wj1'!prls,-----------..-.----------. and at t.hE' ",,",'" U",p dHer:'UnlJ U!.U_ ;jtlynll'Jn to t.he cont.,'nt.o thereof. Sheri!f's COSlSI POCI'.E'lt ng ServicCl A! fiLl"v i l SurchanJp. So af\Gw:l~'-J<: _ ~ 11, ~L-l\T;:il('-;:i~'l 11l.QiO 5. (,0 .00 ~.00 ~:5~5m DARLEY ~tlYDER SEtlFT ~ COHE" 11.'(11/ 1 'Y:J~~') by K,~JC1'l0,. ;~1Jy~ l..epIJc,', herJ.11 S....lJrn and G\lbcc:rlb.-:d tll b,_'1IJl1 Ili(~ l h t G . _1-!_~__ oj" y ,.t'1t/rVi-....t...-- 19__.Ji.. ,., LJ. -C},~-r,.,~ft;, \.~' ,- IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION-LAW LIFETIME. PERIODICALS, INC. 2131 Hollywood Boulevard Hollywood, FL 33020-6750 plaintiff No,1'5-W3~ (7~(}-tL0~ , , , , , , , ., , , ~~ , , - ~:, v, , , , , ~ FRY COMMUNICATIONS, INC, 800 West Church Road Mechanicsburg, PA 17055 Defendant , . , , , , PRABCIPB FOR WRIT OF SUNKORS TO THE PROTHONOTARY: Issue Writ of Summons against the above named Defendant, Fry communications, Inc, Issue the Writ and deliver to Sheriff for .ervice. BARLEY, SNYDER, SENFT' COHEN B /7/ _ a J./~ )'{JJ"~ifer A, n~:; Supreme Court No, 65950 Attorneys for Plaintiff 100 East Market Street p, 0, Box 15012 York, PA 17405-7012 (717) 846-8888 IN 'I'IIE COUll'l' OF cOMMOtl PLEAS OF CtJMIlERLAllD COUNTY, PENNSYLVANIA Cl VI r. AC'I'TON- LAW LIFE'l'lME PER10llICALn, TIle. 2131 lIollywood IlO1l1nVilnl 11011 ywood, Fl. ]:l o;W-(,'1',O P]alntlll No. V. FRY COMMU1HCA'1'10W;, IlIC. 800 West Church HO;Jd Mcchanlcsblll"fJ. I'A I'IO"!', Defend.lllt ny WRIT OF SUMMONS IN A CIVIL ACTION TO: FRY COM~lUNICA'l'ION:;, INC. BOO \~eBt Church HOild Mechnn iCBburq, I'A 1'I0~~, YOU ARE IIEHEII\' NO'I'lFlED '1'IIA'I' TilE A\lOVE NAMED COMMENCED AN AC'l'lON '\(~A I W;'l' \'OU. IJ\WHENCE E. \~ELKER, I'IW'I'IIONOTARY OF CUMBER Dated: ( (,,( ,J/.i.Yf S------ '1 ~j;E~~"""--""'lI' ,}'~t:.."., :', (JJ DO I;~~,t~~~<: -,., . ~ ~ J"-" \' .-> ~&~l~\/ : ..:~ ,....i".'..', -,.., . ;: ~~:f:;~ "-'~,~.t . , . ~ !':i" _....1. i.,'",., " " ,', '~'-;\''''l'::~~,-,~.~ :-+-~.:j , , -., ';';:-'~ ':-."nl-/(~l , , " -,,'f . -' -." .. 1Ie':~' ,';;'IO.'Nl'1 .....:ill:IO.D"IO[ f,?~f~ ,4 &Jll Ci ,. 47,tli- JfI.".. .. ." i ., (Ij,::-.107 f 33 " .,-f {)t:::~: ~:;~~~i !'t:~:i''' \Wt~i~ . ~~t ;J,T", -." ,.~ ., f' -,;:,~;;<~,~! -'~ .,.;.,'..,.,_....; ;.. '-";." "'~'" 'i;;.::;,:~ .., c" ~ ~_;:~:i ", '/di_,}tj :l::~t~ -~ _,._'."0 "~'~: L; -10 -,~')~/ , ,."c., --iX) ;+~'-' ..... -Ji ~., ,,; :c't.' ;'.--;' ?L'~i r ,.. ....t-"'-!a .' ..- "'...., .. ,." , '.. ". , IN THE COURT OF COMMON PLEAS or CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW LIFETIME PERIODICALS, INC" Plaintiff., No, 95-6238 civil Term , , , , , , v, , , . . , . PRY COMMUNICATIONS, INC" Defendant. I I ..ILIIlIDaY OIJ.C'l'IOII. O. DDmm._ ftY il!nMMmlICA'1':rOIl.. :rile. Defendant, Fry communications, Inc., by and through it. under.igned counsel, hereby preliminarily objects to the Complaint, pur.uant to Pa, R, Civ, p, 1028, on the following ground.: 1, Count I of the Complaint, alleging negligent nonfea.ance, should be dismis.ed pursuant to Pa. R, Civ, P. 1028(a)(4) because it fail. to state a claim upon which relief can be granted, 2, Plaintiff alleges in paragraph 5 of the Complaint that it "entered into an agreement" with defendant for the printing of two magazines, Count II of the Complaint allege. that defendant is in breach of the implied warranties of merchantability and fitness for particular purpose, Complaint ii 22 and 23, 3, Count I of the Complaint alleges negligent nonfeasance, Specifically, plaintiff alleges that defendant negligently "fail[ed] to print UPC codes on [the] magazine. and fail[ed] to take any action to prevent distribution of said magazines upon learning the UPC codes had not been printed on the ... . ... covers," Complaint, 16, Plaintiff alleges that these magazines could not be sold without these UPC codes, 14., 10, 4, Plaintiff's negligence claim must be dismissed since Pennsylvania does not recognize a cause ot action sounding in negligent breach of contract, Plaintiff cannot expand its breach of contract claim into a tort claim, 5. Plaintiff's negligence claim must also be dismissed since, as a matter of law, it has not sutfered any legally cognizable harm or injury, Plaintiff alleges that it has suffered merely economic damages, However, pure economic injury is not compensable under a negligence theory, WHEREFORE, defendant respectfully requests that Count I of the Complaint be dismissed against it, with prejUdice, and that defendant be awarded its costs, attorney's tees, and such other relief as the Court may deem appropriate, DATE: December/I, 1995 R....C.fUl~Y ....1.~ ~I(i Ro er A, Swi , hqu re Denis F, Sheils, Isquire KOHN, SWIFT' ORAl', P.C. 2400 One eadinq Center 1101 Ma et St t Phi lade phia 11107-2124 -",-; _1,.'C'. _<:ii' BY: 'J~ >~; BY: ,A er, re GER , ADLER, P.C. 2331 Market Street Camp Hill, PA 17011 (717) 763-1983 Attorneys For Plaintiff Fry Communications, Inc.. -2-