J-A14035-23

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

SCOTT F. LINDE, INDIVIDUALLY AND 

AS TRUSTEE OF THE SCOTT F. LINDE 

FAMILY S CORPORATION TRUST 

Appellants

v.

LINDE ENTERPRISES, INC., A 

PENNSYLVANIA CORPORATION, AND 

ERIC LINDE

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 IN THE SUPERIOR COURT OF

 PENNSYLVANIA

 No. 2212 EDA 2022

Appeal from the Judgment Entered October 5, 2022

In the Court of Common Pleas of Wayne County 

Civil Division at No(s): 348 - Civil - 2019

BEFORE: PANELLA, P.J., DUBOW, J., and SULLIVAN, J.

MEMORANDUM BY SULLIVAN, J.: FILED NOVEMBER 09, 2023

Scott F. Linde (“Scott”), individually and as trustee of the Scott F. Linde 

Family S Corporation Trust (“the Scott Trust”) appeals from the judgment 

entered in favor of Linde Enterprises Inc. (“LEI”) and Eric Linde (“Eric”) 

following the entry of nonsuit. We affirm in part, vacate the judgment, vacate 

the order denying post-trial relief, and remand for further proceedings.

Scott and Eric are brothers. At issue in this litigation is LEI, a 

construction company started by their father. Initially, Scott and Eric each 

owned 300 shares of stock in LEI. Their sister Barbara, who is not involved in 

this lawsuit, owned approximately 100 shares. Scott placed his shares into 

the Scott Trust, and for reasons not apparent in the record, the Scott Trust 
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had one share of LEI stock at the inception of this litigation.

1 Barbara placed 

her shares into her own trust. Scott was a director for LEI, but was removed 

from that position due to alleged wrongdoings. Eric, as the majority 

shareholder, controlled the board of directors, and eventually served as 

president of LEI from 2012 to 2020. 

Since 1999, the siblings have been involved in multiple lawsuits against 

each other, including a 1999 shareholder derivative action filed by Eric against 

Scott and Barbara for allegedly starting their own company and funneling 

assets of LEI into their company. A trial in that action was scheduled to 

commence in 2014; however, on the eve of trial, Eric and Scott reached a 

settlement agreement (“Agreement”). The Agreement provided, in part, that, 

in exchange for Eric’s 300 shares of stock in LEI and Eric’s stock in another 

corporation, Scott would pay Eric $2,000,000,

2 and would transfer his 

interests in certain other entities and land to Eric. Essentially, the Agreement 

would divest Eric of his interest in and control of LEI, and transfer control of 

LEI to Scott upon his payment of $2,000,000 and transfer of specified interests

to Eric. Pursuant to the LEI Shareholders Agreement, Eric provided notice to 

LEI of his intent to sell his LEI stock. After LEI declined to purchase any of 

Eric’s shares, Eric provided notice to the remaining shareholders (i.e., Scott 

____________________________________________

1 Scott is the settlor, sole trustee, and sole beneficiary of the Scott Trust.

2 The Agreement provided that Scott would make an initial payment of 

$1,000,000, and five installment payments of $200,000. 
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and Barbara) of his intent to sell his shares. Barbara declined to purchase any 

of Eric’s shares. Based on his rights as a minority shareholder, Scott 

attempted to purchase 212 of Eric’s shares of LEI stock through the terms of 

the Stock Purchase Agreement, which would have permitted Scott to acquire 

a majority of Eric’s shares for an amount considerably less than the amount 

specified in the Agreement. However, when Scott notified LEI of his intent to 

purchase some of Eric’s stock pursuant to the Stock Purchase Agreement, Eric 

advised Scott that he was legally obligated to purchase all of Eric’s shares 

pursuant to the terms of the Agreement, and that his initial payment of 

$1,000,000 was due. Scott did not make any settlement payments to Eric or 

transfer his interests per the terms of the Agreement. Instead, Scott initiated

a lawsuit against Eric seeking to compel him to deliver 212 shares of his stock

pursuant to the Stock Purchase Agreement.

In 2016, Eric commenced a lawsuit against Scott asserting a claim for 

breach of contract and seeking specific performance of the Agreement (“the 

enforcement action”). Scott counterclaimed that Eric breached the Agreement

by not complying with the notice requirements of the Stock Purchase 

Agreement. The enforcement action proceeded to a non-jury trial at the 

conclusion of which the court determined, inter alia, that: Scott breached the 

Agreement in October 2014; Scott never intended to purchase Eric’s stock in 

LEI as per the terms of the Agreement; Scott’s deceptive conduct was a 

pretext to avoid Eric’s 1999 derivative action; and Eric did not breach the 
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Agreement. The trial court additionally found that Scott was delinquent in 

making payments due under the Agreement and ordered Scott to immediately 

pay $1,400,000 before a final settlement could take place per the terms of 

the Agreement. The court thereafter entered judgment in Eric’s favor, and 

Scott appealed. This Court affirmed the judgment and our Supreme Court 

denied allowance of appeal. See Linde v. Linde, 210 A.3d 1083 (Pa. Super. 

2019); appeal denied, 224 A.3d 1091 (Pa. 2020).

In 2019, Scott filed the present action asserting a claim for unjust 

enrichment against Eric and LEI, and claims for breach of fiduciary duty, fraud, 

and conversion solely against Eric. Although Scott did not assert a claim for 

breach of contract, he repeatedly averred in the complaint that Eric breached

the terms of the Agreement.3 Scott claimed that Eric violated the business 

standstill clause in the Agreement, which purportedly would have required the 

shareholders and directors of LEI (including Eric) to refrain from taking any 

action relating to the company until the settlement was completed and Eric’s 

shares of LEI stock had been transferred to Scott. Scott asserted that Eric 

further breached the Agreement by devaluing LEI by more than $1,000,000

through misappropriating LEI funds and assets, paying legal fees for which 

____________________________________________

3 The omission of any breach of contract claim against Eric in this matter may 

be due to the judicial determination in the enforcement action that Eric did 

not breach the Agreement, and the additional judicial determination that Scott 

breached the Agreement in October 2014, which breach would have 

presumably relieved Eric of his further obligations under the Agreement. See

Linde, 210 A.3d at 1088.
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LEI was not responsible, illegally transferring LEI properties for nominal 

consideration, and improperly invoicing LEI for unnecessary expenses. 

The matter proceeded to a bifurcated non-jury trial which took place 

over three days in August 2021, April 2022, and June 2022. On the third day 

of trial, Scott moved to amend the complaint to conform the pleading to the 

evidence presented at trial. Eric and LEI consented to the amendment. After 

Scott rested his case, Eric moved for compulsory nonsuit on the basis that, 

inter alia, Scott was an improper party to the action since his claims were 

derivative in nature and he was not asserting the claims as a shareholder on 

behalf of LEI but was merely asserting the claims in his individual/trustee

capacity.

4

 The trial court took the matter under advisement and permitted 

the parties to file briefs on the motion to amend and the motion for compulsory 

nonsuit. Ultimately, the court granted Scott’s motion to amend the complaint, 

but nevertheless granted Eric’s motion for compulsory nonsuit on the basis 

that Scott, in his individual/trustee capacity, was not a proper party to file the 

action. Scott then filed a post-trial motion to remove the entry of nonsuit, 

____________________________________________

4 Eric additionally moved for nonsuit on the basis of res judicata, collateral 

estoppel, statute of limitations, and the insufficiency of evidence to support 

the claims. 
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which the trial court denied. Scott filed a timely notice of appeal.

5

 Both Scott

and the trial court complied with Pa.R.A.P. 1925.

Scott raises the following issues for our review:

1. Did the lower court make a determination that was not 

supported by the evidence and the applicable law, commit 

an abuse of discretion, and/or commit an error of law by 

entering a nonsuit in favor of [Eric and LEI] and against 

Scott and in refusing to remove the nonsuit because Scott 

provided sufficient evidence establishing a direct claim, as 

opposed to a derivative claim, to recover against Eric and 

LEI and because Scott is a proper party to assert such direct 

claims? 

2. Did the lower court make a determination that was not 

supported by the evidence and the applicable law, commit 

an abuse of discretion, and/or commit an error of law by 

entering a nonsuit in favor of LEI and Eric and against Scott 

and in refusing to remove the nonsuit without conducting a 

hearing or oral argument on Scott’s post-trial motion?

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5 Scott purported to appeal from the trial court’s order denying his motion to 

remove the nonsuit. However, in a case where nonsuit is entered, the appeal 

properly lies from the judgment entered after denial of a motion to remove 

nonsuit because orders denying post-trial motions are interlocutory and nonappealable until the entry of a final judgment. See Prime Medica Assocs.

v. Valley Forge Ins. Co., 970 A.2d 1149, 1154 n.6 (Pa. Super. 2009)

(explaining that an order denying post-trial motions is interlocutory and not 

appealable until entry of final judgment). Accordingly, this Court directed 

Scott to praecipe the trial court to enter judgment upon the nonsuit. Scott 

complied with that directive, and judgment was entered on October 5, 2022, 

thereby perfecting our appellate jurisdiction. See Pa.R.A.P. 905(a)(5) 

(providing that “[a] notice of appeal filed after the announcement of a 

determination but before the entry of an appealable order shall be treated as 

filed after such entry and on the day thereof”); see also Johnston the

Florist, Inc. v. TEDCO Const. Corp., 657 A.2d 511, 513 (Pa. Super. 1995) 

(en banc) (holding that this Court’s appellate jurisdiction is perfected where 

appellant prematurely appealed from an order denying post-trial relief and 

judgment was later entered). 
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3. Did the lower court make a determination that was not 

supported by the evidence and the applicable law, commit 

an abuse of discretion, and/or commit an error of law by 

entering a nonsuit in favor of LEI and Eric and against Scott 

and in refusing to remove the nonsuit without providing 

Scott the opportunity to amend the pleadings to assert 

shareholder derivative claims consistent with the holding in 

Hill v. Ofalt, 85 A.3d 540 (Pa. Super. 2014)?

Scott’s Brief at 5-6 (unnecessary capitalization omitted, issues reordered for 

ease of disposition).

In his first issue, Scott challenges the entry of nonsuit. Pennsylvania 

Rule of Civil Procedure 230.1 permits a trial court to enter a compulsory 

nonsuit on any and all causes of action if, at the close of the plaintiff’s case 

against all defendants on liability, the court finds that the plaintiff has failed 

to establish a right to relief. See Pa.R.Civ.P. 230.1(c); see also Scampone

v. Highland Park Care Ctr., LLC, 57 A.3d 582, 595 (Pa. 2012).

Our standard of review of an order granting nonsuit is as follows:

In reviewing the entry of a nonsuit, our standard of review

is well-established: we reverse only if, after giving appellant the 

benefit of all reasonable inferences of fact, we find that the 

factfinder could not reasonably conclude that the essential 

elements of the cause of action were established. Indeed, when 

a nonsuit is entered, the lack of evidence to sustain the action 

must be so clear that it admits no room for fair and reasonable 

disagreement. The fact-finder, however, cannot be permitted to 

reach a decision on the basis of speculation or conjecture.

* * * *

On appeal, entry of a compulsory nonsuit is affirmed only if

no liability exists based on the relevant facts and circumstances,

with appellant receiving the benefit of every reasonable inference

and resolving all evidentiary conflicts in [appellant’s] favor. The

compulsory nonsuit is otherwise properly removed and the matter
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remanded for a new trial. . . . The appellate court must review

the evidence to determine whether the trial court abused its

discretion or made an error of law.

Munoz v. Children’s Hosp. of Philadelphia, 265 A.3d 801, 805-06 (Pa.

Super. 2021)

Under established Pennsylvania law, a shareholder does not have 

standing to institute a direct suit for a harm that is peculiar to the corporation 

and that is only indirectly injurious to the shareholder. See Hill, 85 A.3d at

548. Rather, such a claim belongs to, and is regarded as an asset of, the

corporation. Id. Whether a cause of action is individual or derivative must 

be determined from the nature of the wrong alleged and the relief, if any, that 

could result if the plaintiff were to prevail. Id. at 549. In determining the 

nature of the wrong alleged, the court must look to the body of the complaint, 

not to the plaintiff’s designation or stated intention. Id. The action is 

derivative if the gravamen of the complaint is injury to the corporation, or to 

the whole body of its stock or property without any severance or distribution 

among individual holders, or if it seeks to recover assets for the corporation 

or to prevent dissipation of its assets. Id. If damages to a shareholder result 

indirectly, as the result of an injury to the corporation, and not directly, the 

shareholder cannot sue as an individual. Id. In such cases, “only the 

corporation and a shareholder . . . by an action in the right of the corporation 

may bring a lawsuit and claim that a director breached the standard of care 
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owed to the corporation.” Id. at 548 (citation and internal quotations 

omitted).

Scott challenges the entry of nonsuit on the basis that he provided 

sufficient evidence at trial establishing a direct right to recover against LEI 

and Eric. Scott argues that, pursuant to the standstill clause in the 

Agreement, LEI’s overall financial condition should have been maintained and 

preserved until he formally assumed control of the corporation. Scott’s Brief 

at 43-44. Scott insists that the gravamen of his action is Eric’s breach of the 

Agreement by depleting LEI’s corporate funds and assets, and effectively 

bankrupting LEI prior to the transfer of Eric’s stock in LEI to Scott. Id. at 42.

Specifically, Scott contends that Eric misappropriated LEI funds and assets, 

paid legal fees for which LEI was not responsible, illegally transferred LEI 

properties for nominal consideration, and improperly invoiced LEI for 

unnecessary expenses. Id. at 43-46. Scott contends that the Agreement 

created a special relationship that would allow him to recover on the claims 

asserted in the complaint notwithstanding the derivative nature of those 

claims. Id. at 41. Scott points out that LEI was not a party to the Agreement,

which explicitly grants him, and not LEI, the right to seek damages against 

Eric. Id. Scott asserts that the present matter involves claims for losses that 

he personally sustained because of Eric’s breaches of the Agreement. Id. 

Scott contends that, because he provided sufficient evidence to the trial court 

to establish a prima facie case for unjust enrichment against LEI and Eric, as 
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well as breach of fiduciary duty, fraud, and conversion against Eric, the entry 

of nonsuit was inappropriate.

The trial court considered Scott’s first issue and determined that it 

lacked merit. The court reasoned:

Here, [Scott] failed to set forth any evidence of a direct injury 

to [himself]. [Only count one, unjust enrichment, is directed at 

. . . LEI. While count one is labeled as an unjust enrichment claim 

against Eric and LEI, Scott failed to set forth any evidence of LEI 

being unjustly enriched, and in fact, Scott alleged that LEI has been 

diminished by the actions of Eric.] The alleged conduct of . . . Eric 

. . . is as follows: he unjustly deprived [Scott] of the profit from 

“[his] interest in LEI;” sold property of LEI and failed to distribute 

the pro rata proceeds; sold property of LEI to himself or entities 

he controlled below value; used LEI funds to make payments for 

non-LEI expenses; diminished the net worth, or book value, of LEI

through misapplication, wasting, pilfering and diversion of LEI’s 

assets; and, breached his fiduciary duties to [Scott] as minority 

shareholder[]. The complained[-]of actions do not constitute a 

cognizable, individual claim for unjust enrichment, breach of 

fiduciary duty, fraud, or conversion. 

Further, [Scott’s] legal argument that the injur[ies] to [him]

are distinct from any harm to LEI belies the evidence presented. 

The testimony of . . . Scott . . . established that [his] chief 

complaint is the failure to receive the benefit of the bargain in the 

. . . Agreement . . .; accordingly, [Scott’s] injury is not a direct 

injury. (See N.T.[,] 8/30/[]21, [at] 80-81). [Scott] testified “I 

filed the complaint to be able to receive the [sic], what was 

contracted for and also to protect the asset that I agreed to 

purchase which was the stock of [LEI].” Id. at 6. [Scott’s] 

allegations are clearly regarding the alleged devaluation of the 

worth of LEI; this is a claim that would, if proven, establish an

injury to all shareholders of LEI, not only [Scott].

The evidence is clear that [Scott] complain[s] of harm to . . .

LEI; thus, [he is] the improper party to file this action and the court 

must grant a compulsory non[]suit.
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Trial Court Opinion, 7/19/22, at unnumbered 2-3 (footnote and unnecessary 

capitalization omitted, content of omitted footnote incorporated in brackets); 

see also Trial Court Opinion, 10/18/22, at 2 (concluding that “Scott[,] . . .in 

his capacity as minority shareholder of LEI[,] would have been the proper 

party to bring the suit”).

We discern no abuse of discretion or error of law by the trial court in 

entering nonsuit in favor of Eric and LEI. The gravamen of Scott’s claims, as 

set forth in the complaint and adduced at trial, was that Eric, in his capacity 

as majority shareholder and president of LEI, devalued LEI in anticipation of 

his transfer of LEI stock to Scott pursuant to the terms of the Agreement. 

Stated differently, Scott alleged that Eric, while acting as president of LEI,

caused harm to LEI by devaluing LEI and enriching himself in the process. As 

such, Scott asserted direct harm to LEI, and only indirect harm to himself by 

virtue of the Agreement. Because the right to assert a cause of action for the

injury to LEI is considered an asset of LEI, this right could only be asserted in 

an action commenced directly by LEI, or by a shareholder of LEI in a 

shareholder derivative action commenced on behalf of LEI. See Hill, 85 A.3d 

at 548. 

In the instant matter, Scott did not assert any claim in his capacity as a 

shareholder of LEI, nor did he assert a shareholder derivative claim on behalf 

of LEI. Thus, after giving Scott the benefit of all reasonable inferences of fact, 

we conclude that the trial court did not err or abuse its discretion in entering 
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compulsory nonsuit because Scott, as an individual and as trustee of the Scott 

Trust, could not assert a claim on behalf of LEI. See Munoz, 265 A.3d at

805-06. Accordingly, Scott’s first issue merits no relief.

In his second issue, Scott claims the trial court abused its discretion by 

denying his post-trial motion to remove the nonsuit without conducting a 

hearing. Pennsylvania Rule of Civil Procedure 227.1 specifies the types of 

post-trial relief that a trial court may award upon written motion, and the 

procedures related thereto. See Pa.R.Civ.P. 227.1. Notably, Rule 227.1 does 

not require that a trial court presented with a post-trial motion conduct a 

hearing. See id. 

Scott asserts that, due to the absence of a hearing to further develop 

the record on the issues raised within the post-trial motion, he was denied a 

complete opportunity to be heard. Scott acknowledges that the opportunity 

to be heard does not always require a hearing but nevertheless argues that 

he was denied an opportunity to be heard. 

The trial court considered Scott’s second issue and determined that it 

lacked merit. The court reasoned that it was not required to hold a hearing 

prior to ruling on the post-trial motion. See Trial Court Opinion, 10/18/22, at 

4.

We discern no abuse of discretion by the trial court in declining to hold 

a hearing on the post-trial motion. Scott concedes that he was not entitled to 

a hearing. Scott’s Brief at 58. Instead, he simply argues that, given the 
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nature of the proceedings, he should have had the opportunity for oral 

argument. However, as explained above, the trial court was not required to 

grant Scott’s request. Therefore, no relief is due.

In his final issue, Scott contends that, assuming his claims are derivative 

in nature, the trial court erred in refusing to remove the nonsuit to permit him

the opportunity to amend the amended complaint to assert a shareholder 

derivative claim. Pursuant to Pa.R.Civ.P. 1033(a), a party, either by filed 

consent of the adverse party or by leave of court, may at any time change the 

form of action, add a person as a party, correct the name of a party, or 

otherwise amend the pleading. See Pa.R.Civ.P. 1033(a). Leave to amend 

pleadings has traditionally been liberally granted in this Commonwealth. See

Biglan v. Biglan, 479 A.2d 1021, 1025 (Pa. Super. 1984). Rule 1033

imposes no limit on the time when an amendment may be made. Thus, 

pleadings may be amended at the discretion of the trial court after pleadings 

are closed, while a motion for judgment on the pleadings is pending, at trial, 

after judgment, or after an award has been made and an appeal taken 

therefrom. See id. at 1025-26. Indeed, the denial of a petition to amend, 

based on nothing more than unreasonable delay, is an abuse of discretion.

See Capobianchi v. BIC Corp., 666 A.2d 344, 347 (Pa. Super. 1995)

(citation omitted). However, timeliness is a factor to be considered “insofar 

as it presents a question of prejudice to the opposing party.” Id. 
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The right to amend lies within the discretion of the trial court and should 

be granted liberally unless there is an error of law or prejudice to the adverse 

party. See Hill. 85 A.3d at 557. To permit a plaintiff to change its claim at 

the very end of the case may be unjust. See West Penn Power Co. v.

Bethlehem Steel Corp., 348 A.2d 144, 156 (Pa. Super. 1975) (declining to 

permit amendment after entry of compulsory nonsuit, noting that a motion to 

amend is properly denied when the moving party would gain an inequitable 

advantage). Further, amendments may not be made if they introduce a new 

cause of action after the statute of limitations has run. See John Goffredo

& Sons, Inc. v. S. M. G. Corp., 446 A.2d 255, 256 (Pa. Super. 1982). Finally, 

where allowance of an amendment would be a futile exercise, the amendment 

should not be allowed. See Carlino v. Whitpain Inv’rs, 453 A.2d 1385, 

1388 (Pa. 1982).

6

Scott concedes that, when he filed his motion to amend the complaint 

before the entry of nonsuit, he did not seek to add a new party (i.e., Scott in 

his capacity as minority shareholder) or state a derivative shareholder claim

____________________________________________

6 Eric contends that the requested amendment would be futile, as Scott has 

since caused LEI to file a lawsuit against Eric in Wayne County “asserting 

essentially the same claims on the same factual basis . . ..” Eric’s Brief at 25 

n.6; see also id. at Appendix 1 (consisting of a copy of the complaint 

purportedly filed by LEI against Eric asserting, inter alia, claims for breach of 

fiduciary duty, unjust enrichment, and conversion, and alleging, inter alia, that 

Eric purposefully misrepresented and depleted LEI’s assets from 2014 to 2020, 

by misappropriating funds and assets to pay his personal expenses and to 

transfer LEI’s assets and real estate to Eric’s business-related entities). 
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on behalf of LEI. However, he maintains that he requested an opportunity to 

amend the amended complaint in his post-trial motion seeking removal of the 

nonsuit. Scott argues that the trial court should have removed the nonsuit 

and provided him with an opportunity to amend the amended complaint so 

that he could assert a shareholder derivative claim on behalf of LEI. Scott 

contends that the trial court was bound to liberally permit a second 

amendment. Scott claims that amending the amended complaint would not 

add a new party because he would stand in the shoes of a shareholder subject 

to the same claims. Furthermore, Scott asserts that no surprise or prejudice 

to Eric or LEI would result from a second amendment.

The trial court considered Scott’s third issue and reasoned:

Here, [Scott] filed a motion to amend [the] complaint on 

June 13, 2022 during the pendency of trial and at the close of [his] 

case. In that motion, [Scott] sought only to clarify material facts 

regarding [his] claims of evidence and did not seek to add or 

remove parties or to assert any new causes of action. The 

amended complaint neither added Scott Linde, minority

shareholder of LEI, as a plaintiff nor did it assert shareholder 

derivative claims. [Eric and LEI] consented to [Scott’s] motion to 

amend. This court acknowledged [Scott’s] amended complaint in 

its July 19, 2022 opinion and order. [Scott] did not file any 

subsequent motions to amend.

Trial Court Opinion, 10/18/22, at 3 (unnecessary capitalization omitted, 

emphasis added).

Our review of the record discloses that Scott filed a post-trial motion 

styled as a “Post-Trial Motion to Remove Compulsory Nonsuit and to Order 

that Trial is to Proceed on all Issues.” See Post-Trial Motion, 7/28/22, at 1. 
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Patently, the title of the motion gave no indication to the trial court that, within 

the body of the motion, Scott included a request to amend the amended 

complaint to assert a claim in his capacity as a minority shareholder of LEI 

and to add a shareholder derivative claim on behalf of LEI. Nevertheless, such 

a request was included in the motion. See id. at ¶¶ 27-41.

As it appears that the trial court did not apprehend that Scott included 

a request to amend the amended complaint in his post-trial motion, we vacate 

the judgment and order denying post-trial relief and remand for the trial court 

to address the request to amend the amended complaint and determine 

whether such request should be granted or denied, bearing in mind the wellestablished considerations bearing upon that determination as explained 

above. 

Affirmed in part, judgment vacated, order denying post-trial relief

vacated, case remanded for further proceedings consistent with this 

memorandum. Jurisdiction relinquished.

Date: 11/9/2023