The URL can be used to link to this page

Home My WebLink About2005-2916 Civil PATRICIA SMITH, PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MICHELLE REED, DEFENDANT 05-2916 CIVIL TERM IN RE: PRELIMINARY OBJECTIONS OF DEFENDANT TO COMPLAINT OF PLAINTIFF BEFORE BAYLEY. J. AND GUIDO. J. OPINION AND ORDER OF COURT Bayley, J., November 23,2005:-- On July 8, 2005, plaintiff, Patricia Smith, filed a complaint against defendant, Michelle Reed. She attached a Residential Lease Purchase Agreement dated December 13, 2003, between herself and defendant for 325 Second Street, West Fairview, Cumberland County. The Agreement provides inter alia: THIS AGREEMENT, dated December 13, 2003 is between Michelle Reed, the Landlord and Patricia Smith, the Tenant. In consideration of the payment of rent and the keeping and performance of the covenants and agreements by the Tenant hereinafter set forth, the Landlord does hereby lease unto the Tenant, the following described premises situate in the County of Cumberland, State of Pennsylvania to wit: (Insert Legal Address) Parcel number 45-17 -1044- 082. With a street address of: 325 2nd St. West Fairview, PA 17025. The said premises, as described above, are hereby leased to the Tenant for a term of 12 months commencing December 13,2003. Rent for the premises is payable in monthly installments of *see adendum [sic] 1, to be paid on or before the first day of the month for which rent is due. $ of each on time rent payment shall be credited toward the purchase price of the property. Payments to commence *see adendum [sic] 2. This Agreement shall automatically renew for 4 05-2916 CIVIL TERM additional 12 month periods following the expiration of the initial term unless Tenant gives 30 days notice prior to any renewal. THE TENANT, IN CONSIDERATION OF THE LEASING OF SAID PREMISES AS AFORESAID, COVENANTS AND AGREES AS FOLLOWS: To pay the rent for said premises as hereinabove provided; To keep said premises in good condition and repair and at the expiration of this lease to surrender and deliver up the same in as good order and condition as when entered upon, loss by fire, inevitable accident, act of God or ordinary wear and tear excepted; IT IS FURTHER MUTUALLY AGREED that if the tenant shall be in arrears in the payments of any installment of rent, or any portion thereof, or in default of any covenants and agreements herein contained to be performed by the Tenant, which default shall be uncorrected for a period of five (5) days after the Landlord has given written notice thereof, Landlord may, at his option, without liability for trespass or damages, in any manner as allowed by law; declare the term of this lease ended; repossess the said premises as of the Landlord's former estate; peaceably expel and remove the Tenant, those claiming under him, or any person or persons occupying the same and their effects; all without prejudice to any other remedies available to the Landlord for arrears of rent or breach of covenant. IT IS FURTHER MUTUALLY AGREED that the Landlord, in consideration of the performance of all the covenants and agreements herein to be performed by the Tenant under the lease, and for Tenant agreeing to perform all minor repairs to the property during the term of the said lease, hereby grants to Tenant an exclusive option to purchase the above described premises at any time during the term of this lease or any renewals for the sum of $75,000, payable as follows: $1.00 paid cash today with $100.00 due at closing as full payment of Landlord's equity. The Landlord, upon payment of said purchase money, shall convey said premises by warranty deeds, and warrants that only those liens listed herein exist and that no additional liens will be placed against the property during the term of this agreement. Current balance due of any encumbrances are as follow: *see adeundum [sic] 3 and landlord shall furnish a policy of title from a reputable title insurance company at his expense so showing. Additional Provisions: 1. Utilities: Tenant agrees to pay all water, sewer, gas, and electric charges incurred during his tenancy. -2- 05-2916 CIVIL TERM 2. Maintenance: The Tenant shall be responsible for all maintenance and repairs as needed or requested by the Tenant that do not cumulatively exceed $200.00 per month. Any amount of the above repairs over $200.00 per month shall be paid by Landlord. If the Landlord cannot or will not make the repairs as specified in this agreement within 10 days of notice then the Tenant will have the option of either voiding this agreement by written notice to the Landlord or making such repairs and receiving a credit toward any future payments due Landlord. (Emphasis added.) The written addendums attached to the Agreement are: Addendum 1 - monthly rent to be determined when loan is secured by seller. Addendum 2 - payments to commence when seller secures loan and vacates property leaving it in move in, broom swept condition. Addendum 3 - seller will be acquiring a home equity loan for $75,000. Information to be recorded when loan is secured. (Emphasis added.) Plaintiff alleges that on September 14, 2004, defendant advised her by telephone that she was terminating the Agreement. By a letter dated September 14, 2004, plaintiff advised defendant that she did not agree with the termination. Defendant then wrote plaintiff the following letter on September 17, 2004: The Lease Purchase Agreement for the property located at 325 2nd Street West Fairview, Pa 17025 is terminated. Since the conditions for securing the home equity loan cannot be met, the above-mentioned contract is rendered null and void effective immediately. The contract does not specify any fee or penalty for failure to commence; therefore, the contract is cancelled at no cost to either party. As noted in the agreement, a cash payment of one dollar received on December 13, 2003 is being refunded to you. . . . Plaintiff alleges that because she did not default, defendant wrongfully cancelled the Agreement. She alleges that defendant sold the property to a third person in violation of her exclusive option to purchase. She seeks monetary damages consisting -3- 05-2916 CIVIL TERM "of lost revenue over the term of the Purchase Agreement and lost profits on the future sale of the home." Defendant filed preliminary objections to the complaint which includes a demurrer. The objections were briefed and argued on October 20, 2005. In determining if a demurrer should be granted, all well-pleaded facts and inferences reasonably deducible from the pleadings are accepted as true. Realty Group Associates, Inc. v. Divosevic, 408 Pa. Super. 326 (1991). Defendant argues that plaintiff has not stated a claim because the exclusive option to purchase was conditioned upon "consideration of the performance of all of the covenants and agreements herein to be performed by Tenant under the lease, and for Tenant agreeing to perform all minor repairs to the property during the term of said lease. . ." (Emphasis added.) The formation of an enforceable contract requires an offer, acceptance, consideration or mutual meeting of the minds as to essential terms of the contract. See Jenkins v. County of Schuylkill, 658 A.2d 380 (Pa. Super. 1995). The Residential Lease Purchase Agreement was conditioned upon defendant securing a loan on the property, the monthly rent then being determined between the parties, after which defendant would vacate the property. This never occurred. The amount of rent is an essential element of a lease. There being no enforceable lease, the exclusive option to purchase is unenforceable because it was conditioned upon there being a lease which was never consummated. Accordingly, the following order is entered. -4- 05-2916 CIVIL TERM -5- 05-2916 CIVIL TERM ORDER OF COURT AND NOW, this day of November, 2005, the demurrer of defendant to the complaint of plaintiff, IS GRANTED. Plaintiff's complaint, IS DISMISSED. By the Court, Edgar B. Bayley, J. Stephen C. Nudel, Esquire For Plaintiff Lucinda Glinn, Esquire F or Defendant :sal -6- PATRICIA SMITH, PLAINTIFF IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MICHELLE REED, DEFENDANT 05-2916 CIVIL TERM IN RE: PRELIMINARY OBJECTIONS OF DEFENDANT TO COMPLAINT OF PLAINTIFF BEFORE BAYLEY. J. AND GUIDO. J. ORDER OF COURT AND NOW, this day of November, 2005, the demurrer of defendant to the complaint of plaintiff, IS GRANTED. Plaintiff's complaint, IS DISMISSED. By the Court, Edgar B. Bayley, J. Stephen C. Nudel, Esquire For Plaintiff Lucinda Glinn, Esquire F or Defendant :sal