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HomeMy WebLinkAbout96-3818 CivilCHRISTOPHER S. GREEN : and LEE A. ZOELLER and : SUSAN F. ZOELLER, : Plaintiffs : : vs. : 96-3818 CIVIL : THE HOMESTEAD GROUP, INC., · Defendant · IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA CIVIL ACTION - LAW IN RE: DEFENDANT'S MOTION FOR ORDER OF DISCHARGE OF LIABILITY BEFORE BAYLEY AND HESS, JJ. ORDER AND NOW, this /Z.~' day of May, 1998, the defendant is discharged of liability in this case. In accordance with the foregoing opinion, a hearing is set for the 22nd day of July, 1998, at 2:00 o'clock p.m., in Courtroom Number 4, Cumberland County Courthouse, Carlisle, PA. BY THE COURT, Justin McCarthy, II, Esquire For Plaintiff Green Kevin~/'~ess/~ . ,Jo Lee A. Zoeller, Esquire For Plaintiffs Zoeller Thomas O. Williams, Esquire For Defendant :rim CHRISTOPHER S. GREEN : and LEE A. ZOELLER and : SUSAN F. ZOELLER, : Plaintiffs : : vs. : 96-3818 CIVIL IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA THE HOMESTEAD GROUP, INC.,: Defendant : CIVIL ACTION - LAW IN RE: DEFENDANT'S MOTION FOR ORDER OF DISCHARGE OF LIABILITY BEFORE BAYLEY AND HESS, JJ. OPINION AND ORDER This matter is before us on a motion for order of discharge of liability upon deposit into court. The defendant, the Homestead Group, is moving to be relieved of all liability and costs and awarded counsel fees and costs incurred in prosecuting this interpleader action. The procedural history is as follows. On or about July 9, 1996, the plaintiff, Christopher Green, filed a complaint against the defendant for failure to pay sums due under a real estate sales agreement under which the plaintiffpaid $10,000.00 into an escrow account. The defendant, on August 19, 1996, interpleaded Susan and Lee Zoeller for the sum due under the escrow provisions of the agreement. On November 13, 1996, the Zoellers filed a separate complaint, requesting that the disputed escrow be paid to them. The defendant, pursuant to its petition for interpleader and the resulting order of court dated November 22, 1996, admitted liability under the escrow provision of the agreement for the sale of real estate and paid the full amount of the escrow into court. The defendant then filed this petition for order of discharge of liability. On December 20, 1996, the Honorable Edgar B. 96-3818 CIVIL Bayley issued a rule to show cause why the relief requested in the defendant's motion should not be granted. The defendant's motion of January 8, 1997, to make the rule absolute was denied on January 14, 1997. We begin by recognizing that the defendant has done all that the court has required of it. The plaintiff does not dispute this point, but rather opposes this motion on the ground that the defendant faces further liability in this suit stemming from its own actions. Indeed, among the many counts in the plaintiffs complaint are allegations supporting conversion, breach of contract, material misrepresentation and breach of fiduciary duty. It is true that these allegations fall squarely on the defendant's conduct, but the plaintiff overlooks the fact that the relief requested in each count, damages in the amount of $10,000.00, together with interest, costs and counsel fees, has been deposited into court. Therefore, the defendant has met each prerequisite for the relief it seeks. It has interpleaded the rival claimants to the escrow funds; it has disclaimed all interest in those funds; and it has deposited the funds into this court. We are mindful that discharge of liability is a severe and permanent remedy, however, in the case at bar, the defendant is entitled to this relief. The defendant now requests that this court award it costs and counsel fees. In support of this proposition, the defendant point to Pa.R.C.P. 2307(b), which states as follows: When the defendant has complied with such order, the court shall enter an order discharging him of all liability to the plaintiff and to any interpleaded claimant who has been served as required by these rules in respect to the money or property so paid or delivered. If the defendant has disclaimed all interest in the action, the court in its order shall also discharge him from all liability for any costs accruing after the entry of the order and shall allow him the costs 2 96-3818 CIVIL incurred by him in the action, to be paid from such money or property in the first instance and taxed as costs in the action. While noting that this rule mentions only costs, we are also aware of its relation to 42 Pa.C.S. Section 2503(4), which states as follows: The following participants shall be entitled to a reasonable counsel fee as part of the taxable costs of the matter: (4) A possessor of property claimed by two or more other persons, if the possessor interpleads the rival claimants, disclaims all interests in the property and disposes of the property as the court may direct. As we stated above, the defendant has complied with the requirements set forth to entitle it to costs and counsel fees. While we hold that the defendant is entitled to counsel fees, we also believe that a hearing is required on the matter to determine the reasonableness of the fees. Although reasonableness is entirely within our sound discretion, we must evaluate the time spent by counsel, the character of the services and the reasonableness of the fee "in light of a usual scale of compensation given time and place of this litigation." Wrenfield Homeowners Association, inc. v. DeYoung, 410 Pa. Super. 621,630, 600 A.2d 960, 964 (1991). We will therefore schedule a hearing in which the award of counsel fees will be determined. litigation the oppommity to be heard. AND NOW, this liability in this case. Such a hearing will also afford the other parties to this ORDER day of May, 1998, the defendant is discharged of In accordance with the foregoing opinion, a hearing is set for the 22nd day 96-3818 CIVIL of July, 1998, at 2:00 o'clock p.m., in Courtroom Number 4, Cumberland County Courthouse, Carlisle, PA. BY THE COURT, Justin McCarthy, II, Esquire For Plaintiff Green Lee A. Zoeller, Esquire For Plaintiffs Zoeller Thomas O. Williams, Esquire For Defendant :rlm Kev~/~Hess, J. / 4