F:\W P\W ORK\RTG\CHEATLE.COM

UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF PENNSYLVANIA

ROBERT S. CHEATLE, JR. and NANCY A. :

CHEATLE, husband and wife :

834 Paradise Drive : CIVIL ACTION NO.

Ambler, PA 19002 :

:

vs. :

:

DAVID A. KATZ and DAWN KATZ :

832 Paradise Drive :

Ambler, PA 19002 :

and :

PARADISE CONTRACTORS, INC. :

832 Paradise Drive :

Ambler, PA 19002 :

and :

PARADISE PINES HOMEOWNERS :

ASSOCIATION :

c/o 832 Paradise Drive :

Ambler, PA 19002 :

and :

PARADISE MANAGEMENT GROUP, INC. :

832 Paradise Drive :

Ambler, PA 19002 :

and :

PARADISE DEVELOPMENT GROUP, INC. :

832 Paradise Drive :

Ambler, PA 19002 :

COMPLAINT

Parties:

1. Plaintiffs, Robert S. Cheatle, Jr. and Nancy A. Cheatle, husband and wife,

(hereinafter “the Cheatles”), are adult individuals, residing at 834 Paradise Drive,

Ambler, PA 19002. The Cheatles are purchasing signator parties to a certain

Agreement To Sell Real Estate dated October 30, 2000 (hereinafter “Agreement”),

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for the sale and conveyance of a then unimproved parcel of land, more fully

described below (the “Land”). The Cheatles are also signators to a certain

Construction Contract dated August 6, 2000, together with Exhibits A, B, and C and

corollary drawings, specification sheets and plans appended thereto (hereinafter

“Construction Contract”), for the construction of a custom designed residential home

(the “Home”) pursuant to certain Building Plans appended to the Construction

Contract (the “Plans”), the terms of which Construction Contract are also described

below. The primary purpose of this Action is to seek specific performance of both

the Agreement and the Construction Contract; to compel remediation of multiple

defects in the Land and in the construction of the Home, which defects are of a

serious and compelling nature; and/or in the alternative, to seek rescission of the

Agreement and the Construction Contract, and the refund of all monies paid to

Defendants by the Cheatles. True and correct copies of the Agreement and

Construction Contract (with Exhibits A, (and as part of A - “X”: House of the Nineties

#54), B, and C) are attached hereto, made a part hereof, and marked as Exhibits

“1" and “2" (hereinafter at times referred to collectively as the “Agreements”). There

are no corollary documents, which are appended to the original Construction

Contract included with the copy of the Construction Contract attached hereto as

Exhibit 2 (except for Exhibits A, (and as part of A - “X”: House of the Nineties #54),

B, and C because same are bulky and in possession of the parties.

2. Defendants, David A. Katz and Dawn Katz, husband and wife, (sometimes

collectively hereinafter referred to as “Katz”), are Pennsylvania citizens residing at

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832 Paradise Drive, Ambler, PA 19002 (the “Katz Residence”). The Katz

Residence is located on one of four lots of land previously constituting a single

parcel, referred to at times as “Paradise Pines” or “Paradise Drive”; Katz caused

the original parcel to be subdivided ultimately into four (4) residential lots. The

Cheatles’ Land (Lot 3) is contiguous with Lot 4, the Katz lot to the east; while Lot

2 of the subdivided parcel is adjacent to the Cheatles’ Land to the west (the

“Mullen’s Lot”). A true and correct copy of a “Grading Plan - Lot 3 prepared for

David & Dawn Katz” dated February 11, 2000, drawn from the files of Horsham

Township, is attached hereto, made a part hereof, marked Exhibit 3; the Grading

Plan is also a corollary exhibit document appended to the Construction Contract.

Katz also maintain their residence as a registered business address for the

corporate defendants. David A. Katz was and is a signator party to the Agreement

and to the Construction Contract;, he was the title holder of record to the Land at

the time of the sale and conveyance to the Cheatles, and is the “Seller” under the

Agreement.

3. Defendant, Paradise Contractors, Inc. (hereinafter “PCI”), for which a Certificate

of Incorporation was filed on August 4, 2000 by Katz, (two days prior to the date of

the Construction Contract) is a Pennsylvania corporation having a registered

business address at “832 Paradise Drive, Ambler, PA 19002", the Katz Residence.

Defendant David A. Katz was and is the Chief Executive Officer/Secretary and

Treasurer thereof. PCI is an affiliate of the following “Paradise” related entities by

common ownership, officers and common management:

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A. Defendant Paradise Pines Homeowners’ Association (“HOA”) is a

Pennsylvania non-profit corporation having a registered office at 501 Office

Center Drive, Suite 125, Fort Washington, PA, purportedly organized for the

purpose of maintenance, preservation and architectural control over the

Seller’s subdivided lots, including the Cheatles parcel of Land. Defendant

David A. Katz was and is the Chief Executive Officer and Defendant Dawn

Katz is the Secretary/Treasurer thereof.

B. Defendant Paradise Management Group, Inc., formed on or about April 20,

2001, is a Pennsylvania corporation having a registered office at 832

Paradise Drive, Ambler, PA 19002, the Katz Residence. Defendant David

A. Katz was and is, the Cheatles believe, the CEO and Secretary/Treasurer

thereof.

C. Defendant Paradise Development Group, Inc., formed on or about April 20,

2001, is a Pennsylvania corporation having a registered office at 832

Paradise Drive, Ambler, PA 19002, the Katz Residence. Defendant David

A. Katz was and is the CEO/Secretary and Treasurer thereof.

Both PCI and the foregoing “Paradise” entities are controlled and managed by

David A. Katz, who is the CEO of each Corporate entity and by Dawn Katz.

Defendant PCI was contemplated under the Agreement to be the contractor for the

construction of improvements to be erected upon the Land. See Exhibit 1, ¶4.

4. At all times relevant hereto, David A. Katz represented himself directly to the

Cheatles to be experienced in the business of selling residential subdivided lots,

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such as the Land which is the subject of the Agreement and this Action.

5. At all times relevant hereto, David A. Katz represented himself directly to the

Cheatles to be experienced in the general contracting business of custom

residential home construction.

6. For the reasons more fully described below, David A. Katz and Dawn Katz are sued

herein individually and in their capacities as the sole shareholders, directors and

officers of the Pennsylvania corporations described in the caption and in Paragraph

3 above.

Jurisdiction and Venue

7. This Court has exclusive jurisdiction over this matter pursuant to 28 U.S.C. §1331

insofar as Count IV raises a cause of action under the Racketeering Influenced and

Corrupt Organizations Act (“RICO”), 18 U.S.C. §§1961, et seq. and, by virtue of this

Court's supplemental jurisdiction pursuant to 28 U.S.C. §1367 over the remaining

counts of the Complaint (Counts I, II and III through IX).

8. Venue is proper in the Eastern District of Pennsylvania pursuant to 18 U.S.C.

§1965(a) and 28 U.S.C. §1391(b), because the claims arise in this District and all

of the defendants reside, transact business and maintain a principal place of

business in this District. 

Agreement To Sell Real Estate - Lot 3 of Paradise Pines

834 Paradise Drive, Ambler, PA

9. On October 30, 2000, David A. Katz and the Cheatles executed the Agreement

whereby Katz, as “Seller”, agreed to sell and the Cheatles, as “Buyer”, agreed to

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buy the Land comprising .81 acres of unimproved land known as Lot 3, Tax Parcel

No. 36-00-11053-02-6, Horsham Township, Montgomery County, PA, as also

described in ¶ 1 of the Agreement. See Exhibit 1, ¶ 1. The Land is unique and

situated in adjacent proximity to the Katz personal residence i.e., next door to the

Katz Residence. See Exhibit 3.

10. In prior contemplation of the purchase of the Land upon which their Home was to

be constructed, on or about August 6, 2000, the Cheatles as “Owners”, and David

A. Katz, individually and/or in behalf of himself and PCI, as “General Contractor”,

entered into the Construction Contract whereby Katz contracted to construct the

Cheatles Home “in strict accordance with the plans and specifications

approved by the Owners... Exhibit A.” See Paragraph A of Exhibit 2 (emphasis

added) cited at ¶11B(1) below.

Terms and Conditions of Agreement and Construction Contract at Issue

11. A. In consideration of the mutual covenants and promises within the

Agreement, and with time being of the essence, Katz as the “Seller” and the

Cheatles as the “Buyer” agreed, in relevant part, as follows:

(1) A distinct arms-length purchase price of $300,000.00 as quoted by

Katz for the conveyance of the Land, which was paid by the Cheatles.

See Exhibit 1, ¶ 2; 

(2) Closing to take place on or before December 30, 2000; 

See Exhibit 1, ¶ 15 ;

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(3) Per Paragraph 4: “...Seller warrants that there shall be no violations

of building or zoning codes at the time of closing and that said

property will accommodate house to be built by Paradise

Contractors, Inc. for Robert and Nancy Cheatle pursuant to

Construction contract.” [emphasis added]; and

(4) Per Paragraph 6: “DEFAULT BY SELLER: If the Seller fails to

perform any of the covenants of this contract, the aforesaid money

paid by the Buyer, at the option of the Buyer, shall be returned to the

Buyer on demand; or the Buyer shall have only the right of specific

performance.”

B. In consideration of the mutual covenants and promises within the

Construction Contract, and with time being of the essence, Katz, for

himself and through PCI, as the “General Contractor” with the Cheatles as

the “Owners”, agreed, in relevant part, as follows:

(1) Per Paragraph A: 

“A. Scope of Construction

1. General Contractor shall construct a home

(“Construction”) for Owners’ on their property at Lot #3,

Paradise Pines, aka 834 Paradise Drive, Ambler, PA

(the “Project Site”), as herein provided.

2. General Contractor shall complete the Construction in

strict accordance with the plans and specifications

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approved by Owners (which plans and

specifications are attached hereto as Exhibit A),

and in compliance with all applicable laws, ordinances

and regulations (“Laws”). General Contractor shall not

make any substitutions of items specified on such

plans and specifications absent the prior writtenconsent

of Owners, which consent Owners shall not

unreasonably withhold so long as the quality of the

proposed substitution is equal to or better than the

quality of the item or material originally specified.

(Emphasis added).

3. ...General Contractor shall notify Owners when General

Contractor deems the Construction to be substantially

complete, whereupon Owners shall inspect the Project

Site with General Contractor at a mutually convenient

time and jointly prepare a ‘punch list’ in duplicate and

initialed by the parties, on which shall be listed all items

of Construction which are defective, incomplete or

nonconforming to the plans and specifications (the

‘punch list items’). General Contractor shall complete

the construction, repair or replacement (as necessary)

of all punch list items promptly following completion of

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the punch list and in any event within thirty (30) days

thereafter. ...

4. General Contractor estimates that Construction will be

completed by October 12, 2001.”

(2) Per Paragraph B:

“Pricing and Deposit

The Construction is to be performed and completed on a fixed price

basis. The total price of the Construction, including, without limitation,

General Contractor’s profit and overhead, is $650,000 (the ‘GMP’)...”

(3) Per Paragraph C5: “The GMP may be adjusted only by written

change order executed by both General Contractor and Owners. It

shall be General Contractor’s responsibility to cause the Construction

required by any change order to be reflected on Exhibits A and B,

immediately after the change order is executed. ...”

(4) Per Paragraph C6: “Exhibits A and B, as modified by any change

orders, together with this contract, are herein collectively referred to

as the ‘Contract Documents’.”

(5) Per Paragraph D:

“Contingencies

General Contractor agrees to diligently pursue all required approvals

and permits for the Construction as shown on Exhibit A without

additional engineering controls, surveys or similar changes. General

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Contractor shall pay for all permit fees required by all applicable

governmental agencies necessary for the Construction. In the event

a permit for the Construction shown on Exhibit A, without additional

engineering controls, surveys or similar changes, is not obtained by

General Contractor, Owner may terminate this contract by written

notice to General Contractor. Should Owners elect to terminate this

contract pursuant to the foregoing provision, General Contractor shall

return all monies paid to General Contractor by Owner and

thereafter neither party shall have any obligation to the other.”

(Emphasis added)

(6) Per Paragraph E:

“General Contractor’s Indemnity and Insurance

1. General Contractor hereby agrees to be responsible to

Owners for and to indemnify Owners from and against all

liability, actions, damages, claims, demands, judgments,

losses, costs and expenses (including, but not limited to,

attorney’s fees) arising or alleged to have arisen out of or

resulting from the . . . loss or damage to any property, arising

out of or resulting, in whole or in part, from (a) any failure of

General Contractor to perform any of the Construction, to the

extent such failure was not caused by Owners; (b) any

misconduct, malfeasance, misfeasance, or nonfeasance on

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the part of General Conctractor [sic] or any of the

subcontractors on or about the Project Site during performance

of the Construction, and (c) any act of General Contractor or

any of the subcontractors beyond the scope of Construction

authorized by Owners. ... In no event shall General

Contractor’s obligations to indemnify hereunder be limited by

or to the extent of any insurance coverage obtained by

General Contractor or the proceeds thereof. (Emphasis

added).

2. Before commencing the Construction,General Contractor shall

procure and maintain, or cause to be procured and maintained,

throughout the term of this agreement and for at least one (1)

year following completion and final acceptance of the

Construction, at least the following policies of insurance (and

shall be responsible for the administration of all claims

thereunder):

1. * * *;

2. Commercial General Liability, written on an occurrence

based form, with at least the following limits of liability

(CSL):

$1,000,000 General Aggregate Limit

$1,000,000 Products-Completed Operations Aggregate

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$1,000,000 Each Occurrence Limit

$ 50,000 Theft and Vandalism ...”

(7) Per Paragraph E3: ”General Contractor shall also purchase or cause

to be purchased and at all times maintain or cause to be maintained

completed value Builder’s Risk insurance upon the Construction for

the completed value thereof (excluding foundation and excavation

costs). Such insurance shall include Owners and all subcontractors

on all tiers as additional insureds. ... General Contractor shall be

responsible for any co-insurance penalties or deductibles in the event

of an insured loss.”

(8) Per Paragraph E4: “All policies of insurance required under this

contract shall (i) name Owners as additional insured . ... Before

commencing the Construction, General Contractor shall deliver to

Owner certificate(s) evidencing said insurance.”

(9) Per Paragraph E5: “General Contractor shall require all

subcontractors to provide the types of coverages referenced in

paragraph E.2 ...”

(10) Per Paragraph E7: “With respect to any insurance claims covered by

the insurance policies maintained by General Contractor pursuant to

the provisions of this Section E, General Contractor’s insurance shall

be primary, notwithstanding any insurance coverage maintained by

Owners.”

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(11) Per Paragraph F:

“Scheduling

1. General Contractor shall be responsible for promptly providing

a construction schedule to Owners and adhering to same.

Construction is to be continuous and not performed in an

intermittent manner.”

(12) Per Paragraph G:

“Coordination

General Contractor shall be responsible for coordinating all

Construction including Construction performed by

subcontractors and the employees of Paradise Contractors, Inc.

General Contractor shall also be responsible to coordinate

delivery of construction materials to the jobsite in a timely

manner.” (Emphasis added)

(13) Per Paragraph H:

“Supervision

General Contractor shall supervise all phases of the

Construction. General Contractor shall be responsible to

Owners for all acts or omissions of General Contractor’s

employees, subcontractors, and their agents which cause any

damage or loss to the persons or property of Owners, their

children or their invitees.” (Emphasis added)

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(14) Per Paragraph I:

“Subcontracts

1. General Contractor shall let all subcontracts, unless otherwise

agreed. ...”

(15) Per Paragraph J:

“Quality Control

General Contractor shall be responsible for assuring that the

Construction is performed in a good and workmanlike manner

and in accordance with the standards of professional care

typically expected of a qualified and experienced general

contractor.” (Emphasis added)

(16) Per Paragraph N:

“Warranty

Owners

1. General Contractor warrants to Owners that, upon Final

Completion, the Construction:

(i) shall conform to all Laws as of the date the

Construction is performed and shall conform to the

Contract Documents; 

(ii) shall be free from defects or deficiencies in

equipment, materials, or workmanship, latent or

otherwise;

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(iii) shall incorporate only new materials and

equipment; and

(iv) shall be free of Liens.

2. General Contractor’s warranty does not extend to normal

settlement cracks, and shall expire one (1) year after Final

Completion of the Construction. General Contractor shall

assign and deliver to Owners at Final Completion all equipment

warranties and all warranties received from subcontractors.”

(Emphasis added)

(17) Per Paragraph P:

“Miscellaneous

1. This contract shall be governed by the laws of the

Commonwealth of Pennsylvania.”

(18) Per Paragraph P5, the term “Complete Construction” is defined in

Paragraph F1(a). Paragraph F1(a) defines the term “Complete

Construction” by reference to the date of issuance of a certificate of

Occupancy for the Home by Horsham Township.

(19) Per Paragraph P6: “The terms, conditions, rights and obligations in

this Agreement, and all other attachments thereto, shall survive

‘Complete Construction’, and this Agreement shall not be deemed to

be merged into any other documents unless explicitly stated and

mutually agreed to by the parties.”

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(20) Per Signature Block:

“Paradise Contractors, Inc.

By:______________________

 David Katz”

Material Inducements to the Cheatles’ Execution

of the Agreements and Defendants’ Subsequent Fraud,

Misrepresentations, Deceit, Breach and Noncompliance with Agreements

12. A. David A. Katz personally assured the Cheatles, represented and warranted,

and consistent therewith, was and is contractually bound to the commitment

that the Land would accommodate the Home which was to be built “in strict

accordance” with the Plans. See ¶4 of the Agreement (¶11A(3) above of this

Complaint); ¶A1 and 2 of the Construction Contract (see ¶11B(ii) above).

1. notwithstanding the foregoing, land use restrictions relating to

Horsham Township’s Zoning Ordinance provisions addressing

pervious to impervious surface ratios precluded construction of the

Home per the Plans, a fact which was known or should have been

known to Katz as an experienced real estate seller and residential

home construction contractor. In fact, according to information

supplied by Township officials, and therefore believed to be true by

the Cheatles, Katz had to address the Township Ordinance dealing

with impervious surface building coverage limitations with respect to

their own residential lot and home construction. Further, the Home

was not able to be constructed in accordance with the Plans on the

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Cheatles’ Lot without a variance from the Township Zoning Board

which Katz failed to advise Cheatles and failed to obtain in violation

of ¶4 of the Agreement and of ¶D of the Construction Contract. See

Complaint, ¶11B(5) above. Instead, in further breach of the

Agreement and Construction Contract, Katz altered the design of the

Home, ignored the appended Plans, and substituted different design

plans without the knowledge, consent or approval of the Cheatles in

violation of ¶ C5 of the Construction Contract. See ¶11B(3) above of

this Complaint.

B. David A. Katz personally assured the Cheatles, represented and warranted

and consistent therewith, was contractually bound to cause the construction

of the Home to be completed no later than October 12, 2001. See ¶ A4 of

the Construction Contract. In addition, Katz personally assured the Cheatles

they would coordinate the timing of closing and their occupancy of the Home

by three (3) months’ prior notice from him of the anticipated completion date

of construction so that in reliance thereon, the Cheatles would list for sale

and sell their prior residence in an orderly manner to dovetail with the

availability of their Home for occupancy.

1. notwithstanding the foregoing, and with an agreed two month

extension of the original April 30, 2001 closing date, Katz

nevertheless failed to supervise delivery of labor and materials to the

Cheatles’ Home site but instead prioritized labor activity at the

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Mullen’s Lot (Lot 2) to construct and install a pool, patio and cabana

thereon, using the Cheatles Lot for access thereto. Katz failed to

coordinate the timing of completion of the Home construction, failed

to give the Cheatles accurate and reliable advance notice, and

Closing on the Home was delayed until July 26, 2001, an additional

three months beyond the original closing date. As a result, the

Cheatles, who had placed their prior residential property for sale and

closed on the sale, were forced to rent hotel rooms and incur

additional personal expenses as described below, for which Katz

agreed to reimburse the Cheatles but for which they have refused to

honor their contractual obligations and personal commitment:

(a) Construction Loan Interest: $12,504.51;

(b) Mortgage Placement Fee (1%): $10,000.00;

(c) Professional labor costs to move

furniture from garage to the Home: $ 850.00;

(d) Labor costs to move furniture to

Home garage: $ 900.00; and

(e) Hotel Expenses for twenty-five

(25) days @ $136.00 per day: $ 3,400.00.

For purposes of application of the one (1) year Warranty under Paragraph

N of the Construction Contract, the Home is deemed “completed”, by

reference to the definition contained in Paragraph F1(a) thereof, on August

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22, 2001, the date of issuance of the Certificate of Occupancy by Horsham

Township. See ¶¶11B(16) and (18) above.

C. David A. Katz personally assured the Cheatles, represented and warranted,

and consistent therewith, was and is contractually bound to construct and

deliver their Home “in strict accordance” with the Plans and further, that he

and his or PCI’s subcontractors would make no changes or substitutions

without the Cheatles’ prior written consent utilizing change order forms to be

appended to the Construction Contract. See ¶ A2 and ¶ C5 of the

Construction Contract. See ¶¶11B(1) and B(3) above.

1. notwithstanding, Katz violated the foregoing representations and

agreements, negligently failed to supervise his and/or PCI’s

subcontractors and negligently failed to coordinate the construction,

and repeatedly misrepresented his intentions, acts and/or omissions

during the period of construction of the Home, by, inter alia,

substituting materials of a lesser quality than specified in the Plans or

by his negligence, allowing their or PCI’s subcontractors to substitute

materials of a lesser quality than specified, all to the detriment of the

Cheatles but to the economic gain to Katz, his spouse and/or PCI,

including without limiting the foregoing, with regard to the Plan

specifications for the roof materials, an outdoor hot tub, interior

carpeting, kitchen cabinetry, staircase construction materials,

electrical design and installation, bathroom and shower design, patio

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and driveway materials, size and capacity of garages, air conditioning

compressors, lighting fixtures, design, installation and ventilation of

fireplaces, and grade of the basement.

2. David A. Katz submitted only two written change orders in compliance

with the terms of ¶C5 of the Construction Contract, which were

approved by the Cheatles, with respect to a four foot extension of the

living room design and the selection of kitchen items; otherwise Katz

is guilty of negligence, and/or reckless and wanton disregard of the

Plan specifications, and/or, committed intentional acts of fraud and

deceit through substitution of materials as described above and as

further itemized in a spreadsheet titled “Preliminary Report of

Defects and Damages Assessment” which is attached hereto, as

a part hereof, marked Exhibit “4". In the aggregate, the current

Damages Assessment described in Exhibit 4 amounts to

$537,597.00.

D. David A. Katz personally assured the Cheatles, represented and warranted,

and consistent therewith, was and is contractually bound to the commitment

that he and/or PCI were and would continue to be “fully” insured and would

maintain agreed coverages for the benefit of the Cheatles, upon which the

Cheatles reasonably relied. See ¶ E of the Construction Contract cited at

¶11B(6) above. Katz also agreed to add the Cheatles as additional insureds

to his and PCI’s coverages, agreed to cause each of his or PCI’s

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subcontractors to similarly procure and maintain specified insurance

coverages, and agreed to provide the Cheatles certificates of insurance.

1. despite repeated demands for the certificates and for copies of the

insurance policies and for further assurances of the foregoing, Katz

has failed to provide same and has misrepresented delivery of proof

of coverage to the Cheatles’ home mortgage lender

E. David A. Katz personally assured the Cheatles, represented and warranted,

and consistent therewith, was and is contractually bound to the commitment

that they would benefit from contracting with him, their “next door neighbor”;

that he was personally experienced in the business of construction

management, particularly with respect to custom residential home

construction; that his personal residence (the Katz Residence) and that of

the Mullens (Lot 2) was indicative of the manner in which Katz and/or PCI

would perform, and conform, to the Plans agreed upon by the Cheatles, thus

serving as a “model” of the quality of labor and materials; and he contracted

accordingly. David A. Katz and Dawn Katz each escorted the Cheatles

through the Katz Residence as well as the Mullen home, prior to their

signing of the Construction Contract and the Agreement.. See ¶ 4 of

Agreement; and ¶¶A2, C6, G, H, and J of the Construction Contract cited at

¶¶11A(3), 11B(1), (4), (12), (13), and (15) above..

1. to the contrary,Katz failed to supervise construction, repeatedly failed

to attend or be present at the Home construction site, despite preCase 2:02-cv-04405-HH Document 1 Filed 07/02/2002 Page 21 of 43
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arrangements to do so; failed to coordinate and supervise

subcontractors; failed to timely remit payments to subcontractors who

provided labor and/or materials in connection with the construction of

the Cheatles’ Home; employed inexperienced and unskilled labor

resulting in numerous and serious defects in the construction; and

employed subcontractors for whom the work at the Cheatles Home

construction site was not their primary employment but was “off

hours” work resulting in services at night and/or weekends, all

resulting in detriment to the Cheatles but economic gain to Katz and

his spouse and/or PCI, and therefore, in the alternative, indirectly to

Katz.

F. David A. Katz personally assured the Cheatles and their son, represented

and warranted prior to and as a material and purposeful inducement to the

Cheatles execution of the Agreements, that the Cheatles’ son would have

direct key-assisted access to the basketball court installed at the Katz

Residence; that Katz personally provided a key to Michael Cheatle for his

access to the basketball court at times convenient to Michael; and the

foregoing assurances, representations and warranties did induce the

Cheatles not to purchase another lot from a third party real estate seller

upon which the Cheatles had planned to install a rear-yard basketball court.

1. notwithstanding, the Katz Residence has recently been listed for sale

by the Katz; and, as a result of the disputes arising in connection with

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the acts and omissions of Katz and/or PCI, as described herein,

access to the basketball court on the Katz Residence is and

continues to be denied and will be forever repudiated upon the sale

of the Katz Residence, in material and spiteful violation of the

assurances, representations, and warranties of Katz. A true copy of

the Listing Detail is attached hereto, as a part hereof, marked Exhibit

“5".

G. Katz personally assured the Cheatles, represented and warranted prior to

and as a material inducement to the Cheatles’ execution of the Agreements,

and consistent therewith, was and is contractually bound to the commitment

that the common elements, areas, and spaces of Paradise Pines or Drive,

would be maintained and preserved by the Paradise Pines Homeowners

Association; and the foregoing assurances, representations and warranties

did induce the Cheatles to execute the Agreements; to remit specified

assessments at the Closing under the Construction Contract; and, to pay

and continue to pay monthly dues to the Katz and/or to the HOA.

1. notwithstanding, Katz failed to record any HOA related documentation

as required under and pursuant to Horsham Township Council’s

Resolution No. 96-68, paragraph 7, and that certain Agreement to

Accept Conditions dated November 13, 1996, by and between David

A. Katz and Horsham Township, paragraph 1(g); and, pursuant to the

Pennsylvania Uniform Planned Community Act, more specifically

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described in Count VIII below which renders the HOA a legal nullity;

and in failing to do so, caused a defect and/or potential defect in the

Cheatles’ title to Lot 3 not to be insured by their title insurer at

Closing, and have continued to collect HOA dues and assessments

to the economic detriment of the Cheatles but to the economic

advantage of the Katz and/or Paradise HOA.

H. David A. Katz personally assured the Cheatles, represented and warranted,

and consistent therewith, was and is contractually bound to the commitment,

that they would be able to fully inspect the Home during and after completion

of Construction and contracted for same. See ¶¶ P3, 4 and 5 of the

Construction Contract.

1. Katz negligently and/or purposefully, hindered, delayed and/or

deceived the Cheatles and as a result interfered with and frustrated

their contractual right to confirm the use of specified materials and

proper materials installation and construction techniques.

Notwithstanding eight (8) closing punch lists, which are still not

resolved in direct violation of the express warranty of Paragraph N of

the Construction Agreement (see ¶11B(16) above), many of the

defects described in Exhibit 4 were and continue to be latent and

such as are now only ascertainable. See ¶18 below and Exhibits “6"

and “7" appended hereto.

2. Notwithstanding the many delays in delivery of the Home, and on or

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about July 25, 2001, Katz threatened to terminate his efforts under

the Construction Contract; he cajoled the Cheatles into occupancy of

the Home prior to the inspections required by Horsham Township to

reduce the amount of expenses that he had agree to reimburse the

Cheatles (see ¶12B1 above); and finally, Katz caused the Township

to conduct an occupancy certificate inspection prior to the completion

of unfinished work at the Cheatles’ Home, all to the personal and

economic detriment of the Cheatles, but to the economic gain of Katz,

his spouse, and/or PCI, and therefore, in the alternative, indirectly to

Katz.

3. Upon information supplied by Township officials, and therefore

believed to be true by the Cheatles, inspection of the Home would not

disclose Katz’ substitutions of inferior materials, shoddy but latent

workmanship and installation techniques contrary to municipal and

national industry codes, all to the personal and economic detriment

of the Cheatles but to the economic gain of the Defendants.

I. David A. Katz personally assured the Cheatles, represented and warranted,

and consistent therewith, was and is contractually bound to the commitment,

that he and/or PCI would provide the Cheatles with full warranty

documentation relating to and covering their Home, including without limiting

the foregoing, with particular regard to the Home roof, fireplaces, hot tub,

rugs, heating systems, compressors and other mechanized devices, and

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appliances.

1. notwithstanding, and despite repeated requests and demands

therefor, Katz and/or PCI and their subcontractors, have failed to

provide such warranty documentation, in direct violation of Paragraph

N2 of the Construction Contract cited at ¶12B(16) above.

The Cheatle’s Compliance with

Terms and Conditions of Agreements

13. The Cheatles as Buyer, and as intended occupant of the Home, performed In full

compliance with the terms and conditions to be performed by the Cheatles under

the Agreement and the Construction Contract, 

Katz and PCI’s Fraud In The Inducement

and Misrepresentations

14. The foregoing assurances,representations, warranties and commitments described

in Paragraph 12 above, were made to the Cheatles with the intent to induce the

Cheatles not to purchase other land they were considering for the construction of

their home from an independent third party, but to enter into the Agreements to and

for the benefit of the Defendants.

15. The Cheatles believe, and therefore aver, that such representations were materially

false and known to Katz to be false at the time they made them to the Cheatles, as

Katz materially misrepresented:

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A. Their knowledge and skill as a General Contractor and construction

manager of residential home construction;

B. Their experience and skill in supervising subcontractors and coordinating

on-site labor and delivery of specified materials in connection with

residential custom family home design and/or construction and as pertaining

to the Cheatles Land and improvements planned and built thereon;

C. Their ownership and maintenance of insurance coverage specified in the

Construction Contract which insurance coverage, upon information and

belief and repeated demand upon the Defendants, was not and is not

consistent with the requirements of the Construction Contract (see ¶E2 cited

at ¶11B(6) above), or in the alternative, has not and never was procured and

is not available to provide economic resources necessary to remediate the

multiple defects, poor workmanship, failure to supervise and numerous

breaches of contract more fully described herein;

D. The single family residential home design in that Katz and/or PCI failed to

conform to the Construction Contract Plans specifications, including without

limiting the foregoing, by failing to adhere to Exhibit A-X: “House of The

Nineties 54" Home design plans;

E. The quality and conformance to the Plans of the materials Katz, PCI and/or

his or their subcontractors, would procure and did procure but rather,

negligently or knowingly, substitutedinferior and non-specified materials and

supplies without the knowledge or written authorization of the Cheatles;

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F. That the Home contracted for by the Cheatles would “fit” on the Land as an

improvement and that the Home built in strict accordance with the Plans

would meet all land use, building and safety code requirements of Horsham

Township;

G. That certain recreational facilities (basketball court) would be provided to the

Cheatles for their use and their children’s use tantamount to an easement

running with the Land and with Katz’ Lot 4, during and at all times while the

Cheatles resided in their Home;

H. The proper organization, existence and recordation under Horsham

Township Council’s Resolution No. 96-68 and the Uniform Planned

Community Act (68 Pa.C.S.A. §5101, et seq.) of Paradise Pines

HomeownersAssociation (“HOA”) despite collecting HOA assessments from

the Cheatles at the Closing and continuing to collect monthly HOA dues.

16. As a result of the misrepresentations of the Defendants upon which the Cheatles

reasonably relied, and as a result of Katz’ failure to advise the Cheatles of the

actual and true facts, the Cheatles have been and continue to be materially

damaged and economically harmed.

17. The Defendants are jointly and severally liable for the foregoing fraudulent

misrepresentations, and David A. Katz and Dawn Katz are individually liable, and

liable within the course and scope of their ownership, management, acts and/or

omissions by and in furtherance of the business of each and every corporation

named as defendant herein.

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Recent Events Precipitating The Cheatles’

Formal Claims

18. Despite the transmittal to Katz of eight (8) written “punch lists” prepared by the

Cheatles, including: a letter dated July 25, 2001, hand delivered to David A. Katz

the day before the Closing date, and including a further list prepared at the Closing,

following by six (6) additional written lists submitted to Katz, the most recent dated

April 4, 2002 addressed to Katz’ attorney, to which no response has been

forthcoming, the Cheatles have been continuously discovering additional defects,

shoddy workmanship, and substitution of inferior goods in lieu of specified materials

of which the Cheatles had no actual knowledge and which could not be visible to

them despite inspections of the Home. As described in the punch lists and in

Exhibit “4" attached hereto, the Defendants’ fraud, deceit, breaches of the

Agreement and Construction Contract and/or negligence, have resulted in uncured

defects, hazards, and potential hazards that render the Home unfit, and/or

potentially unfit, for habitation, and not in conformance with the Cheatles’ Plans.

A. By letter dated June 3, 2002 addressed to Mr. Cheatle by Stephen J. Pilch,

Code Enforcement Officer, Horsham Township, with a copy to “Builder

(Katz)”, Horsham Township confirmed the results of a May 13, 2002

inspection by Mr. Pilch. A true and correct copy of the letter by Mr. Pilch is

attached hereto, as a part hereof, marked Exhibit “6". Mr. Pilch confirms

nineteen (19) violations which are more specifically noted on Exhibit “4"

attached hereto. Mr. Pilch copied Katz to inform him “of the need to correct

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the above deficiencies. Once corrections are completed a re-inspection of

the work must be scheduled.” (Emphasis in the original).

B. Neither the Cheatles nor the Township, upon the Cheatles’ information and

belief, have received any response from Katz to Mr. Pilch’s letter.

C. By letter dated May 24, 2002, Joseph Halferty of Code Inspections, Inc.,

advised the Cheatles of the results of his re-inspection of the electrical work

performed by Katz and/or their or PCI’s subcontractors at the Home. A true

copy of Mr. Halferty’s letter is attached hereto, as a part hereof, marked

Exhibit “7". Mr. Halferty identifies ten (10) “possible Code violations and

concerns” in his letter including:

“Hot tub is in need of complete re-wiring and bonding” and

“...a load calculation be taken on the small [electrical] sub panel in the

basement.”

D. The Cheatles believe and therefore aver, based upon information and advice

from Township Code officials, that the foregoing Code violations and

concerns, pose serious and continuing safety hazards and potential threats

to their safety and continuing threats to their Home and property, which if not

abated or remedied, will cause them economic harm and possibly irreparable

injury. In fact, portions of the Home and certain improvements, including

without limitation, the hot tub and fireplaces, are not usable without risk of

physical harm to their family and guests and to their Home and property.

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COUNT I

Breach of Contract-Express and Implied

Warranties and Terms

Specific Performance - - Sale and Conveyance of Land

19. The Cheatles incorporate by reference Paragraphs 1 through 18 above as though

fully set forth herein at length.

20. David A. Katz was and is a signator party to the Agreement, and PCI, as the alter

ego of David A. and Dawn Katz by ownership, is specifically bound by the terms of

the Agreement. See Exhibit 1, ¶ 4 and Exhibit 2.

21. The Defendants, jointly and/or severally, breached and failed to fulfill and perform

the material terms and conditions of the Agreement and the Construction Contract,

as provided therein. In addition thereto, and/or in the alternative, by Katz and/or

PCI’s breaches and failures to fulfill and perform the express terms of the

Agreements, they have jointly and severally breached the implied warranties

applicable to residential home construction and sale. Accordingly, the Cheatles are

entitled to elect to specifically enforce the Agreement by a suit for specific

performance and additional contractual and/or equitable relief. See Exhibit 1, ¶6

cited above at Paragraph 11A(4).

22. Katz’s obligation to fulfill and perform the material terms and conditions of the

Agreement was and remains unconditional.

23. Katz’s obligation to convey the Land so as to accommodate the Home for the

Cheatles pursuant to the Plans was and is unconditional. See Exhibit 1, ¶4 and

Exhibit 2, ¶6, cited above at Paragraph 11B(19) above.

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24. Time was expressly of the essence in regard to the material obligations to be

performed by Katz and PCI. See Exhibit 1, ¶9.

25. Despite the express provisions of the Agreement, particularly in connection with the

construction of the Cheatle Home, pursuant to ¶ 4, Katz has repudiated the

Cheatles’ effort to seek their remedies despite repeated requests therefor, thus

denying the Cheatles the intended benefit of their purchase, use, and occupancy

of the Land and of the proper construction of the proposed improvements thereon.

26. The Cheatles seek to specifically enforce the Agreement and the Construction

Contract by compelling Katz and PCI to proceed to compensate the Cheatles for the

immediate remediation of the defects in the Land and in the improvements thereon,

at the sole cost and expense of the Defendants.

27. As a result of Katz and PCI’s failure to perform under the terms, conditions, and

obligations of the Agreement, and of the Construction Contract, the Cheatles are

entitled to also recover losses, liabilities, damages, and costs including counsel,

engineering, accounting and other professional or expert fees incurred by reason

of Katz and PCI’s actions or non-actions. 

WHEREFORE, the Cheatles seek an Order compelling an expedited hearing to

address the Cheatles’ request for immediate specific enforcement of the Agreement and

Construction Contract including an expedited Order compelling Katz and PCI to proceed

to remediate the defects or to compensate the Cheatles for the cost of remediation

described herein and in Exhibit 4, together with Defendants’ payment of damages, losses,

liabilities, costs, claims and all counsel, engineering, accounting and other professional

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and expert fees and costs incurred or to be incurred by the Cheatles as a result of

Defendants’ acts or omissions and failure to perform their obligations under the Agreement

and the Construction Contract, together with professional fees and costs in connection with

this Action, and such other and further relief as the Court may deem appropriate. 

COUNT II 

Action For Declaratory Judgment 

Specific Performance Or, In The Alternative, 

Rescission And Recovery Of Funds Paid And Advanced

28. The Cheatles incorporate by reference Paragraphs 1 through 27 above as though

fully set forth herein.

29. Katz and PCI collectively breached the Agreement and the Construction Contract.

30. As a result of Katz and PCI’s violation or failure to fulfill and perform material terms

and conditions of the Agreements, resulting in breaches of express and implied

warranties thereunder or relating thereto, and failure and refusal to proceed to

remediate the defects as described herein, and in Exhibit “4", the Cheatles seek

a declaration of rights that they are entitled in the alternative, to the return of all

monies and other sums paid to Katz and reimbursement for all expenses under the

Agreements, as well as any additional sums advanced or paid to PCI, and/or paid

directly to PCI’s subcontractors and material men, pursuant to the Construction

Contract , and sums advanced or paid to the HOA, as well as sums paid by the

Cheatles to third party contractors or materials suppliers, together with professional

and expert fees and costs in connection with this Action, in exchange for their reconveyance of title to the Land.

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WHEREFORE, the Cheatles seek an Order compelling an expedited hearing to

address the Cheatles request for immediate declaratory judgment entitling them to rescind

the Agreement and the Construction Contract with Defendants; directing Defendants, in

the alternative, to return all monies paid by the Cheatles, reimbursement of all expenses

under the Agreement, all additional sums advanced or paid by the Cheatles pursuant to

the Construction Contract, or paid in their effort to remediate the Home, together with

professional fees and costs in connection with this Action, and such other and further relief

as this Court deems appropriate, in exchange for the Cheatles’ execution of a special

warranty deed over to David A. Katz or to his nominee.

COUNT III

Lis Pendens

31. The Cheatles incorporate by reference Paragraphs 1 through 30 above as though

fully set forth herein.

32. Based upon the Cheatles’ right to specifically enforce the Agreements, the Cheatles

have entered or will enter simultaneously with the filing of this Action, on the record

of title in Montgomery County, PA, two (2) duplicate Praecipes For Lis Pendens

certifying that the Action within affects the title to the Land described in detail

above, as well as the Katz’s Lot 4, in view of the current effort by Katz to list and

sell the Katz Residence. True and correct copies of pre-filing forms of the Lis

Pendens praecipes are attached hereto, as a part hereof, marked Exhibits “8" and

”9".

WHEREFORE, Plaintiffs seek an Order compelling an expedited hearing to address

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Plaintiffs requests for relief in the nature of specific performance of the Agreements or in

the alternative, rescission, with maintenance of the Lis Pendens until further Order of the

Court.

COUNT IV

Violation of RICO Act

33. The Cheatles incorporate by reference Paragraphs 1 through 32 above as though

fully set forth herein.

34. Defendants David A. Katz and Dawn Katz are each a “person” as that term is

defined in 18 U.S.C. §1961(3).

35. Defendants David A. Katz and Dawn Katz are each an officer, director, and/or

shareholder, in the defendant corporate entities which collectively comprise the

Paradise entities, as described hereinabove at Paragraph 3 (the “Paradise

Enterprise”).

36. The Paradise Enterprise constitutes an “enterprise” as defined in 18 U.S.C.

§1961(4).

37. At all times relevant hereto, the Paradise Enterprise has been and is engaged in

activities which affect interstate commerce.

38. Defendants have engaged in a fraudulent scheme by and through the misconduct

described hereinabove.

39. Defendants have used the United States mails on two or more occasions within the

preceding ten year period for the purpose of executing or attempting to execute a

scheme to defraud as described in this Complaint in violation of 18 U.S.C. §1341.

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The planning and execution of the aforementioned ongoing schemes to defraud

involved and involve the use of the United States mails, including but not limited to:

A. causing preparation of, executing, and mailing of Contract Documents and

related writings to Horsham Township and to the Cheatles that

misrepresented the Plans as well as the Defendants compliance therewith,

relating to the Home construction; and

B. causing the mailing of letters and financial documents to and from third

parties, including the Cheatles’ residential mortgage lender.

40. Defendants have used the interstate telephone network on two or more occasions

within the preceding ten year period for the purpose of executing or attempting to

execute a scheme to defraud as described in this Complaint in violation of 18

U.S.C. §1343.

41. At the times of the Defendants’ fraud and deceit, the Cheatles were unaware that

Defendants’ representations were false and they relied on the foregoing

representations to their detriment.

42. Defendants knowingly and willfully caused the aforementioned uses of the United

States mail and telephone calls in interstate commerce in furtherance of the

schemes to defraud described in this Complaint in violation of 18 U.S.C. Sec. 1341

and Sec. 1343.

43. The Cheatles cannot yet identify the exact dates of every mailing or telephone call

in furtherance of Defendants’ aforementioned schemes, nor the substance thereof,

the parties thereto, or the precise manner in which Defendants caused such mailing

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or telephone call to be made. Upon information and belief, such mailings and

telephone calls were caused by Defendants and continue to be caused as

Defendants continue to refuse to abate their fraud, deceit and breach of the

Agreements constituting an indispensable part of the acts and omissions of

Defendants in furtherance of the foregoing detriment to the Cheatles but economic

gain to the Defendants.

44. David A. and Dawn Katz have engaged in a pattern of racketeering activity to

acquire, maintain, foster directly or indirectly, their interests in and economic gain

in the Paradise Enterprise by the conduct alleged above in violation of 18 U.S.C.

§1962(b).

45. David A. and Dawn Katz are employed by and/or associated with the Paradise

Enterprise which is engaged in and/or affects interstate commerce and have

controlled, dominated, caused, conducted or participated, directly or indirectly, in

the conduct of Paradise Enterprise's affairs through a pattern of racketeering

activity as alleged herein in violation of 18 U.S.C. §1962(c).

46. The acts of mail fraud and wire fraud by the Defendants are an integral part of the

pattern of racketeering activity described in this Complaint.

47. The Cheatles have been injured as a result of the Defendants’ violation of the RICO

Act and, as a result, are entitled to an award of treble damages, attorneys fees and

costs against the Defendants in accordance with 18 U.S.C. §1964(c).

COUNT V

Conversion

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48. The Cheatles incorporate herein by reference Paragraphs 1 through 47 above as

though fully set forth herein.

49. By reason of the foregoing, Defendants intended to exercise dominion and/or

control over property owned by the Cheatles.

50. By reason of the foregoing, Defendants deprived the Cheatles of their property

without their consent or lawful justification.

51. By reason of the foregoing, Defendants converted the Cheatles’ monies and

property as set forth above and thereby damaged the Cheatles.

WHEREFORE, the Cheatles demand judgment in their favor, against Defendants,

jointly and severally, and request that this Court grant relief by ordering the following:

A. Defendants to produce within 10 days any and all invoices, cancelled

checks, and other documentation evidencing all money, materials and goods

that Defendants procured or diverted without authorization or reimbursement

to the Cheatles.

B. An accounting of the Paradise Enterprise to ascertain and confirm the

monies and property that has been diverted, or converted, by Defendants’

fraud, deceit, and breaches of the Agreements.

C. Defendants to reimburse the Cheatles for all sums of money and cost of

materials or goods necessary to remediate their Home;

D. That the Cheatles be awarded their attorneys’ fees and other professional

or expert fees and costs incurred in connection with this Action;

E. That the Cheatles be awarded interest on any monetary award; and

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F. Such other and additional relief as this Court deems just and appropriate.

COUNT VI

Unjust Enrichment

52. The Cheatles incorporate by reference Paragraphs 1 through 51 as though fully set

forth herein.

53. By reason of the foregoing, Defendants enjoyed the proceeds and profits derived

from the their fraud, deceit and breaches of the Agreements, and were unjustly

enriched thereby, causing damage to the Cheatles.

54. The misconduct of the Defendants justifies the declaration of a constructive trust

comprised of the property, gains, money, proceeds and profits derived from the

aforementioned fraud, deceit and breaches and conversions of monies and property

of the Cheatles.

WHEREFORE, the Cheatles demand judgment in their favor, and against

Defendants, jointly and severally and request that this Court grant relief requested in

Counts I through V above.

COUNT VII

PA Uniform Trade Practices and 

Commercial Protection Law (UTPACPL)

55. The Cheatles incorporate by reference Paragraphs 1 through 54 as though fully set

forth herein.

56. As a result of the fraud, deceit and breaches of the express warranties contained

within the Agreements, and the implied warranties derived therefrom, including the

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implied warranty of habitability, the Defendants have violated the provisions of the

UTPACPL for which the Cheatles are entitled to protection thereunder and recovery

as provided therein.

WHEREFORE, the Cheatles demand judgment in their favor, and against Defendants,

jointly and severally and request that this Court grant relief as requested in Counts I

through VI above.

COUNT VIII

Cheatles v. David A. and Dawn Katz and

Paradise Pines Homeowners Association

Derivative Action

Uniform Planned Community Act

57. The Cheatles incorporate by reference Paragraphs 1 through 56 as though fully set

forth herein.

58. The Cheatles have not ratified the actions or omissions of Defendants in regard to

the negligence, failure to act, breaches and/or misconduct described hereinabove.

59. The Cheatles have at various times requested that Defendants undo the fraud,

deceit and breaches of the Agreements, conversion and/or negligence described

above, but Defendants have, to date, refused to comply with such requests.

60. Defendant Paradise HOA is unwilling and unable to take action to assert demands

against David A. and Dawn Katz, and only by the Cheatles' claims and interposition

of this Court can the rights of the Cheatles, and the HOA Corporation be properly

managed and the individual Defendants’ acts and omissions remedied. 

61. By reason of the foregoing, it is unnecessary to make any further demand upon the

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HOA as such demand would be futile. 

WHEREFORE, the Cheatles demand judgment in their favor and derivatively on

behalf of the Defendant Paradise Pines Homeowners Association, against Defendants,

David A. and Dawn Katz, and request that this Court grant full and complete relief as

requested in the foregoing Counts I through VII, together with attorneys’ fees and costs,

and punitive damages as provided for under the Uniform Planned Community Act.

COUNT IX

Negligence

62. The Cheatles incorporate by reference Paragraphs 1 through 61 as though fully set

forth herein.

63. Defendant are jointly and severally liable in tort for their simple negligence and/or

reckless and wanton disregard of their contractual commitments and obligations,

their negligent failure to supervise and coordinate the construction of the Home, all

resulting in the economic loss, harm and personal injury, future loss and injury, and

entitlement to indemnification and relief afforded by law, the Agreements and the

insurance coverages available generally and/or pursuant to the express terms of

Paragraph E2 of the Construction Contract (see ¶11B(6) above).

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WHEREFORE, the Cheatles demand judgment in their favor, and against

Defendants, jointly and severally and request that this Court grant relief as requested in

Counts I through VIII above.

Dated: ___________. 2002 By: 

John C. Fenningham, Esquire

Attorney I.D. No. 22655

Maura F. Ratigan, Esquire

Attorney I.D. No. 79309

CORR, STEVENS & FENNINGHAM

Five Neshaminy Interplex, Suite 315

Trevose, Pa. 19053

(215) 639-4070

Attorneys for Plaintiffs,

Robert S. Cheatle, Jr. and Nancy A.

Cheatle

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V E R I F I C A T I O N

I, ROBERT S. CHEATLE, JR., and NANCY A. CHEATLE, are individuals

residing in the Commonwealth of Pennsylvania, and are authorized to make this

verification. We verify that the facts set forth in the foregoing Complaint are true and

correct to the best of our knowledge, information and belief. We understand that the

statements made herein are subject to the penalties of 18 Pa. C.S. Section 4904, relating

to unsworn falsification to authorities.

Dated: ______________, 2002 

ROBERT S. CHEATLE, JR.

________________________________

NANCY A. CHEATLE

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