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HomeMy WebLinkAbout2001-6322 Civil DONALD E. ADAMS AND CATHY A. ADAMS, his wife, PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MARY LOUISE RAMSAY WOLF, RICHARD W. RAMSAY, LARRY M. RAMSAY, MARGHERITA R. RAMSAY, LYNN ANN WHITE tld/b/a W. R. RAMSAY PROPERTY AND RENTALS, DEFENDANTS 01-6322 CIVIL TERM IN RE: MOTION OF MARY LOUISE RAMSAY WOLF FOR POST-TRIAL RELIEF OPINION AND ORDER OF COURT Bayley, J., July 12, 2006:-- A bench trial was conducted on March 22, 2006, on a claim by plaintiffs against defendants for breach of a settlement agreement. On March 27, 2006, the court entered the following verdict which was supported by a written opinion. (1) In favor of Donald E. Adams and Cathy A. Adams against Mary Louise Ramsay Wolf. (2) Damages are awarded to Donald E. Adams and Cathy A. Adams against Mary Louise Ramsay Wolf in the amount of $27,500, plus legal interest from February 5, 1999. (3) I find in favor of Richard W. Ramsay, Larry M. Ramsay, and Lynn Ann White. Pursuant to Pa. Rule of Civil Procedure 227.1, defendant, Mary Louise Ramsay Wolf, filed a timely motion for post-trial relief. The issues have been briefed and 01-6322 CIVIL TERM argued. The opinion filed on March 27,2006, is incorporated herein and made a part of this opinion. Mary Louise Ramsay Wolf seeks an order vacating the verdict and the entry of a judgment in her favor. Citing Reutzel v. Douglas, 870 A.2d 787 (Pa. 2005), she maintains that there was insufficient evidence for the court to enter an award against her. In Reutzel, the Supreme Court of Pennsylvania held that an attorney may only bind a client to the terms of a settlement based on express authority. As set forth in the prior opinion, on December 19, 1998, attorney Charles H. Stone, representing the Ramsays, wrote to attorney Marcus A. McKnight, who represented the Adams: This will confirm our telephone conversation of December 18, 1998. I propose to settle the dispute between the Ramsays and the Adams's as follows: A. The Ramsays will pay the sum of $27,500 to Mr. and Mrs. Adams. B. Mr. and Mrs. Adams will deliver general releases to Richard Ramsay, Larry Ramsay and spouse, Lynn Ann White and spouse, and Mary Lou Wolf. They would in turn release the Adams's. C. This offer is contingent upon Mary Lou Wolf's purchase of the property and her supplying the funds for this settlement, which she has orally agreed to do. Should she not fulfill this promise and not purchase the property, the offer would be withdrawn. We have to put a time limit on such an arrangement, and I am suggesting Jan. 31, 1999. If you find this satisfactory, please advise with some writing that I can display to other counsel involved in the transaction. (Emphasis added. ) McKnight then wrote Stone, stating: "This letter is to confirm that we have settled -2- 01-6322 CIVIL TERM the case. . . ." At trial, Stone testified that, "I was told to prepare a release because I was told the matter had been settled and the money would be forthcoming. . . the sum of $27,500. . .." He further testified: I had authority to pay the money. I didn't have the money, and where the money was coming from is a further question. But I had authority to settle the case for $27,500, but it was a conditional approval or permission. My understanding, based on my conversation with my clients, was that Mrs. Wolf would supply the money but I didn't speak with her since she was not my client so I don't know what those conversations were specifically. Richard Ramsay testified on direct examination that there was a settlement agreement reached so the property could be conveyed to his sister. She would pay the $27,500 to the Adamses. Otherwise, he would not have participated in conveying the property to his sister. On cross-examination, he testified that he did not authorize Stone to make a settlement of $27,500. In finding in favor of plaintiffs against Mary Louise Ramsay Wolf and awarding damages in the amount of $27,500, we stated in the prior opinion: Based on the evidence, and the reasonable inferences to be drawn therefrom, we find that the four siblings agreed that a $27,500 settlement be made with the Adams to be paid by Wolf, and that they would then settle on their $1,400,000 sale to Wolf. Richard Ramsay conveyed those terms to attorney Stone, Stone conveyed them to McKnight. The General Release was prepared by Stone releasing the four siblings, which was forwarded to Cheyney. Cheyney returned the Release to Stone with a suggested change which Stone put in the Release. The offer made by Stone to McKnight was specifically contingent upon Wolf supplying the funds for the settlement. Wolf did not supply those funds. Upon further -3- 01-6322 CIVIL TERM review, we conclude that Stone did not have express authority to bind Wolf, nor did Richard Ramsay. Although Wolf's attorney, Curtis Cheyney, made a change to the release, the release did not set forth that the $27,500 was to be paid by Mary Wolf alone. Furthermore, there is no evidence that Cheyney had express authority to bind Wolf to pay the $27,500. Accordingly, although we are satisfied, as we stated in the opinion in support of the verdict, that the reasonable inferences to be drawn from the evidence was that the siblings agreed that a $27,500 settlement would be made with the Adamses to be paid by Wolf, there is insufficient evidence to conclude that the offer of settlement by Stone to McKnight, which was accepted but which was specifically contingent upon Wolf making the payment herself, was binding on Wolf. A post-verdict judgment can be entered if the movant is entitled to judgment as a matter of law, or the evidence was such that no two reasonable minds could disagree that the outcome should have been rendered in favor of the movant. Kiker v. Pennsylvania Financial Responsibility Assigned Claims Plan, 742 A.2d 1082 (Pa. Super. 1999). For the foregoing reasons, the following order is entered.1 ORDER OF COURT AND NOW, this day of July, 2006: (1) The verdict entered on March 27,2006, IS VACATED. (2) Judgment is entered in favor of Mary Louise Ramsay Wolf. 1 This resolution makes it unnecessary to discuss the other issues raised in Wolf's post-trial motion. -4- 01-6322 CIVIL TERM George B. Faller, Jr., Esquire For Plaintiffs Curtis P. Cheyney, III, Esquire 1601 Market Street, 34th Floor Philadelphia, PA 19103 For Mary Louise Ramsay Wolf :sal By the Court, Edgar B. Bayley, J. -5- DONALD E. ADAMS AND CATHY A. ADAMS, his wife, PLAINTIFFS IN THE COURT OF COMMON PLEAS OF CUMBERLAND COUNTY, PENNSYLVANIA V. MARY LOUISE RAMSAY WOLF, RICHARD W. RAMSAY, LARRY M. RAMSAY, MARGHERITA R. RAMSAY, LYNN ANN WHITE tld/b/a W. R. RAMSAY PROPERTY AND RENTALS, DEFENDANTS 01-6322 CIVIL TERM IN RE: MOTION OF MARY LOUISE RAMSAY WOLF FOR POST-TRIAL RELIEF ORDER OF COURT AND NOW, this day of July, 2006: (1) The verdict entered on March 27,2006, IS VACATED. (2) Judgment is entered in favor of Mary Louise Ramsay Wolf. By the Court, Edgar B. Bayley, J. George B. Faller, Jr., Esquire For Plaintiffs Curtis P. Cheyney, III, Esquire 1601 Market Street, 34th Floor Philadelphia, PA 19103 For Mary Louise Ramsay Wolf :sal