Court Opinion

ID: 9395793
Source: CourtListenerOpinion
Date Created: 2023-05-18 16:11:38.522982+00
Date Added: 2024-06-11T17:19:11.343231
License: Public Domain

Circulated 04/21/2023 05:24 PM

 IN THE COURT OF COMMON PLEAS OF NORTHAMPTON COUNTY, PA
                   CIVIL DIVISION — LAW

BT MANAGEMENT, LCC                         : No. C- 48- CV- 2014-03772
              Plaintiff

      VS

7065-A WILLIAM PENN HIGHWAY, LLC                                        ry     y
                                                                        Cr
               Defendant

      PENNSYLVANIA RULE OF APPELLATE PROCEDURE 192S&?)
                   MEMORANDUM OPINION

      The parties are limited liability companies. Plaintiff BT Management,

LLC, is apparently owned and controlled by its managing member, Dr.

Bruce Thaler.   We were informed by counsel that Dr. Thaler was a

practicing dentist, with his office and residence located in the Altoona,

Pennsylvania area.   Counsel represented that Dr. Thaler also engaged in

commercial real estate and development as a second business interest.

We were also informed that Defendant 7065-A WILLIAM PENN HIGHWAY,

LLC was principally owned by Edwin and Kathryn Novak, an elderly couple

who had a history of investing in real estate. Mr. Novak was the

managing member of the Defendant LLC until his death in 2019.        Mrs.

Novak is now the managing member of Defendant.

      The triggering Order which brings about this appeal was dated

February 14, 2022 and docketed on February 15, 2022. In that Order we

entered a nonsuit for the failure of Plaintiff to present any evidence during
the trial which concluded on September 21, 2020, The February 14, 2022

Order was entered after remand from the Superior Court.

        On February 24, 2022, Plaintiff filed a motion for post- trial relief

asserting that our entry of a non- suit was ( apparently) an abuse of

discretion.

        On March 21, 2022, we filed an Order with a Statement of Reasons

denying Plaintiff's post- trial motion.

        On April 18, 2022, Plaintiff filed a Notice of Appeal to aseries of

interim orders entered under this docket number, specifically orders cited in

the notice of Appeal are dated July 9, 2029, July 22, 2019, July 15, 2020,

September 2]., 2022, September 22, 2020, and March 21, 2022.             However,

we believe that the Plaintiff has misidentified by date some of the orders

under appeal as there were no Orders entered on July 22, 2019 or July 15.

2020.    One of the targeted orders should have been designated as July 22,

2020.    Finally, Plaintiff did not list the February 14, 2022 Order in which we

entered the nonsuit.

        On April 28, 2022 we requested a ]. 925(b) statement of matters

complained of on appeal.

        On May 18, 2022, Defendant filed his Statement of matters

Complained of on Appeal.

        However, in an effort to give context to this dispute, we must provide

asummary of the factual history to this dispute.

                                           2
      This matter involves a failed real estate development project regarding

a parcel of land located at, and known as, 7065-A William Penn Highway,

Easton, Pennsylvania ( hereinafter referred to as " the property"). In 2011,

the parties entered into the first of three purported contracts for the sale of

three separate parcels that were to be carved out of the property, with the

intended purpose of erecting commercial buildings on each parcel. The

parties refer to the separate parcels as the " Sheetz Pad," the " Embassy

Pad," and the " McDonalds Pad," respectively.   Later, Plaintiff alleges that

Defendant agreed to provide an option for afourth, unidentified parcel from

the subdivision.

       Apparently, for aconsiderable time, the parties discussed and

cooperated with the subdivision process. However, it is also apparent that

the parties' relationship deteriorated; and, the eventual failure to obtain

subdivision approval generated this lawsuit.

      On April 24, 2014, Plaintiff BT Management, LLC (" BTM") filed a

Complaint against WPH and asserted eight claims: Count I - Breach of

Contract seeking Specific Performance regarding Amended Sheetz Pad

Agreement of Sale dated July 3, 2012; Count II - Breach of Contract seeking

Money Damages regarding both original Sheetz Pad Agreement of Sale dated

July 6, 2011 and the Amended Sheetz Pad Agreement of Sale dated July 3,

2012); Count III - Breach of Contract seeking Specific Performance

regarding Embassy Pad Agreement of Sale dated April 23, 2012; Count IV -

                                        3
Breach of Contract seeking Money Damages regarding Embassy Pad

Agreement of Sale dated April 23, 2012; Count V - Breach of Contract

seeking Specific Performance regarding McDonald's Pad Agreement of Sale

dated March 12, 2013; Count VI - Breach of Contract seeking Money

Damages regarding McDonald's Pad Agreement of Sale dated March 12,

2013; Count VII Breach of Contract seeking Specific Performance for First

Ratification Agreement ( unwritten and undated); Count VIII") - Breach of

Contract seeking Specific Performance regarding Second Ratification

Agreement ( unwritten and undated). See Complaint at 14-20.

      VVe should note that the Agreements referred to as the original Sheetz

Pad dated .July 6, 201.1 and the Embassy Pad dated April 23, 2012 were

signed by Mr, Thaler and Mr. Novak; however, the Amended Sheetz Pad

agreement and the McDonald's Pad agreement were signed by Mr. Thaler

and a person known as Lou Pektor, III.    Mr. Pektor is apparently a local

developer who at: various points may have acted as mediator or a " go-

between" the parties, but was unrelated to Defendant 7065-A William Penn

Highway, LLC, as Mr. Pektor was not an owner, managing member, or

employee of Defendant.

      We also note that the alleged " Ratification Agreements" were not

written or signed by either of the parties. The First Ratification Agreement

was alleged to be captured in a series of emails between third parties. See

Complaint pp. 12 - 13 and Exhibit 5. The Second Ratification Agreement was

                                      4
allegedly discussed in a conference call. See Complaint at 13 - 14.   Further,

based upon the allegations in the complaint "... Novak, again refused to

ratify the three existing Agreements of Sale or sign the amendments on

behalf of Defendant 7065-A..." See Complaint ¶ 75. In fact, " Novak

demanded further concessions...." See Complaint ¶ 77.

        On July 9, 2019, Judge McFadden dismissed BTM's specific

performance claims, or Counts I, III, V, VII, and VIII, on the grounds that

BTM could not prove an adequate description of the properties it sought to

be conveyed through specific performance. See Order of Court, July 9,

2019. Thus, only Counts II, IV, and VI for money damages remained in the

instant case.

        Judge McFadden placed this matter onto the December 2019 jury trial

list.   However, the matter was continued from the December list to the

March 202..0 jury trial list. In the interim, Judge McFadden retired from the

bench.

         On February 11, 2020, the President Judge reassigned the above-

captioned matter to the undersigned.

         We scheduled a March 4, 2020 pretrial conference with counsel.

During the pretrial conference, Defendant's counsel indicated there were

several outstanding pretrial issues that needed to be addressed related to

the failure of Plaintiff to identify any expert witness on damages and a

dispositive Motion in L.imine, which Defendant: intended to file on the

                                        5
morning of trial seeking to preclude the remaining causes of action. In

response, counsel for Plaintiff indicated that they did not intend to call an

expert witness to address damages, that damages would be addressed by

the BT's managing agent, Bruce Thaler. Dr. Thaler is both adentist and a

land developer.   As far as the anticipated dispositive Motion, we suggested

acontinuance of the March 9, 2020 trial and allow the Defendant to pursue a

motion for summary judgment, so that we would have an opportunity to

properly analyze the issues.

      Ultimately, on March 9, 2020, we entered an Order with the

agreement of Plaintiff and the reluctant agreement of Defendant, who voiced

significant frustration over the fact that the case had been languishing for

such a long time. In our Order, we directed that the parties file any

additional motions for summary judgment and/or motions in limine to

preclude testimony no later than April 23, 2020; argument on the dispositive

motions was set for May 26, 2020; we required the parties to refine their

pretrial statements with regard to the identification of witnesses; and we

rescheduled the trial for the Civil Jury Term of September 21, 2020, with

warning to the parties that we expected that we would grant no further

continuances absent exigent circumstances.       Our order also directed

counsel meet: to review the deposition of Edwin G. Novak, the managing

agent for Defendant LLC, who sat for a deposition but had since died. We

                                        6
required counsel to identify any objections to the admission of Mr. Novak's

deposition with regard to the " dead man's rule".

      Shortly after our March 9, 2020 conference, Northampton County was

briefly shut down for jury trials by the Administrative Order of the President

Judge due to the COVID 19 Emergency. The suspension of jury trials

included the months of March through June 2020.

      On April 28, 2020, Defendant filed for summary judgment seeking the

dismissal of the remaining counts. The matter was set for Argument on May

26, 2..020. Thereafter, Defendant filed a reply brief on June 8, 2020.

      On June 8, 2020, the President Judge entered an Administrative

Order opening up jury trials in Northampton County beginning in July

2020, The Order provided for significant COVID-19 safety protocols,

including masking of all participants and appropriate social distancing

including the jurors throughout jury selection and trial.

In the interim, counsel timely file

      On July 1.5, 2020, we entered an order granting Defendants' Motion to

Preclude Expert Testimony on the issue of damages and we granted partial

summary judgment dismissing Counts IV and VI of Plaintiff's Complaint, as

both contracts purported to convey real estate, but the owner of the real

estate did not sign either contract. Thus, we allowed only Count II - Breach

of Contract for Money Damages related to the lot identified as the

anticipated location for a Sheetz Gas Station/Convenience Store to go to

                                       7
trial.   We also precluded the admission of hearsay documents and opinion

testimony from alleged fact witnesses - a realtor and an accountant - with

regard to the issue of Plaintiff's money damages. The realtor and

accountant: were never identified as expert witnesses, not did either author a

report.    Further, neither proffered witness had direct involvement with the

underlying dispute.

         Interestingly, Plaintiff's theory for liability was that the Defendant

LLC intentionally subverted the approval process to defeat the sale of the

lot to Plaintiff, by deficient effort or intentional lack of effort, which

constituted breach of contract. It appeared to be aconvoluted and

difficult burden to prove the breach, but on its face the claim could

possibly be meritorious. An additional burden of proof issue existed as

Plaintiff did not identify or provide a report from an expert witness to

address either liability or money damages.        Plaintiff's sole witness on the

issues of liability and money damages was the managing member of BT

Management, LLC, Dr, Bruce Thaler.         Further, based upon counsels'

representation, the Township representatives were expected to be called

by the Defendant to establish the action taken by the township to deny

subdivision approval.      Thus, it appeared to be ashort trial, with very

limited testimony by Plaintiff.

         Docket/judicial activity was dormant from July 15, 2020 until

September 8, 2020, when we received a letter faxed to our judicial office

                                           8
from counsel for Plaintiff alleging that Dr. Thaler was requesting a

continuance due to his concerns over contracting COVID-19. Counsel did

not file a motion or provide acontinuance form as required by

Northampton County Local Rules, which form required a signed response

by opposing counsel. The letter asserted various facts not of record and

directly asked the Court to take action by granting relief. The request was

off the record and wholly improper as ex-parte communication ( even

though the letter noted that acopy was sent to opposing counsel,

providing acopy to counsel did not excuse the impropriety of the

communication).

      In reaction to the letter and because this was a major case

assignment scheduled for trial, we immediately conducted a telephone

conference with counsel.   Defense counsel vociferously objected to the

continuance request indicating that his clients were elderly and had the

same concerns regarding Covid exposure as Plaintiff; further, Defendant's

counsel asserted prejudice to his elderly client who needed closure to this

long drawn out dispute related to resolving her financial situation in order

to plan for the distribution of her estate. Therefore, counsel argued that

the continuance was prejudicial to his client.

      In r^esponse to Dr. Thaler's concern, we indicated to counsel that

Northampton County was very protective with regard to its COVID-19

protocols. We further noted that everyone who would be involved in this

                                       9
trial shared the same concerns as Dr. Thaler regarding Covid exposure,

including the parties, counsel, the court, all courtroom and courthouse

staff, and perhaps most importantly all jurors who were summoned to the

courthouse to participate in this trial. We also assured Plaintiff's counsel

that we would endeavor to accommodate Dr. Thaler by limiting his social

contacts at the; Courthouse. Plaintiff's counsel seemed satisfied with our

assurances.

         Can Friday prior to Monday's jury selection, September 18, 2020,

counsel appeared before the undersigned for afinal conference.         At that

time, Plairtiff's counsel presented aformal motion for continuance, which

counsel styled as a " renewed" request for continuance with a proposed

order.      We note that the motion referenced Dr. Thaler's concern for his

adult children, referenced as aged 28 ( Mark) and 31 ( Brittany). We briefly

inquired    C
            -)nd
            ,      learned from counsel that Dr. Thaler's children hold advanced

educational degrees and are professionally employed.        No reference was

made as to where Dr. Thaler's adult children live or their marital status.

The Motion also attached as an exhibit a letter dated September 17, 2022

which was written by Aimee Lestrange, CPNP, bearing a MedStar Health

letterhead and a street address in Washington D.C. The letter was

addressed to Mark Thaler in care of his apparent home address at 2123

12th Place NW, Washington DC.         Nurse Lestrange's letter referenced that

Mark Thaler had past surgery ( no date provided) for inflammatory bowel

                                           10
disease and that due to his ongoing treatment and related

"immunosuppression" concerns Nurse Lestrange was recommending that

Mark Thaler should not appear in court " as an advisor." [ We note that the

Younger Mr. Thaler was not listed as atrial witness.]      Further, Nurse

Lestrange noted that if his father [ Dr. Thaler] did attend trial, "... it would

be recommended that [ they] remain apart for a period of quarantine."

         As an aside, we were also led to believe that Dr. Thaler's dental

practice was an ongoing, active practice; therefore, we could only assume

that Dr. Thaler was interacting with his staff and patients throughout

Covid.

         Again, Defendant's counsel opposed the late request, noting that he

had witnesses lined up to appear and further, that his elderly client was

also fearful of contracting Covid, but that he and she were satisfied that

the President Judge's protocols were very reasonable; therefore, Mrs.

Novak intended to be present and participate throughout the entire trial.

         We again assured Plaintiff's counsel that we would do everything

possible to limit Plaintiff's exposure, including excusing Plaintiff from jury

selection on Monday and after opening statements and what we assumed

would    be   Plaintiff's immediate testimony as the first witness, we would

excuse Plaintiff from participating any further in the trial after the

completion of his testimony. Thus, Plaintiff merely had to walk from his

car Into our Courtroom, sit at counsel table to be called as a witness and

                                          11
then leave the Courthouse without directly interacting with any additional

people. Plaintiff's counsel seemed to be satisfied with our efforts.

Ultimately, we were unimpressed with the alleged emergency request.

Therefore, after consultation with counsel, we denied the continuance

request and wrote on the attached proposed order that we denied the

request.   We then returned the documents to counsel. Apparently,

Plaintiff's counsel did not to file his pleading seeking a continuance, nor

our written denial that day.

      Counsel for the respective parties ( and Mrs. Novak) appeared for

jury selection on Monday, September 21, 2020. We then picked our jury

and swore the jury in to return the next day to commence trial. The next

day we reconvened at 8:30 a.m. to conduct opening statements.

Plaintiff's counsel appeared without his client and indicated that his client

opted not to appear due to his continued concerns about COVID; and

therefore, Plaintiff's counsel conceded that he could not go forward with

his case. Thereafter, Defendant asked for a directed verdict. We granted

Defendant's motion for a directed verdict and later entered a written

Order,that same date granting a directed verdict in favor of the Defendant

and against Plaintiff, as after-jury selection Plaintiff failed to appear to

present evidence in support of its claim.

      Apparently, at 9:1.3 a.m. on September 22, 2020, after the entry of

the directed verdict on the record, Plaintiff's counsel appeared in the

                                         12
Prothonotary's office to file the Motion for continuance, with the attached

denial dated September 18, 2020.

      On October 21, 2.020, Plaintiff, BT Management, LLC, filed it first

Ncjticee of Appeal to the Order dated September 22, 2020 in which we

entered a directed verdict in favor of Defendant and against Plaintiff,

dismissing the Plaintiff's cause of action because, after jury selection,

Plaintiff failed to appear to present its cause of action.

      On October 22, 2020, we filed our Pennsylvania Rule of Appellate

Procedure 1925(b) Statement of Matters Complained of on Appeal.

      On November 12, 2020, we received Plaintiff's 1925(b) Statement.

      The matter was remanded by the Superior Court on January 4,

202.2. The remand noted that our Order was not reduced to afinal

judgment :and, therefore, the Superior Court lacked jurisdiction. The

Superior Court quashed the Appeal. Further, Superior Court noted that

Defendant irnproperly filed a " snap" Praecipe for judgement on September

23, 2020, well before time for seeking a new trial had expired. As a

result, the judgment was void and had no legal effect. The Superior

Court's order also opined that we should not have entered a directed

verdict:, but rather we should have entered adirective for a non- suit.

      After remand, we held several conferences with counsel to

determine the route forward, prior to entering our Order of February 14,

2022 for nonsuit based upon Plaintiff's failure to present any evidence.

                                         13
                   The Matters Complained Of On Appeal

     The eight count complaint involves the sale of four proposed lots from

the expected subdivision. The four lots were described as the Sheetz Pad

(designated for a gas station and convenience store), the Embassy Pad ( a

proposed bank), McDonald's Pad ( fast food store). The fourth lot was

unidentified and alleged to be part of the two " Ratification" agreements in

which Plaintiff was to obtain an option to purchase the fourth lot. The

Complaint contained five counts for specific performance for the Amended

Sheetz Pad, Embassy Pad, McDonald's Pad, and the two " Ratification"

agreements. 1"he remaining three counts were plead in the alternate seeking

money damages for breach of contract related to the Sheetz, Embassy, and

McDonald's Pads.

      Here, the Statute of Frauds, which applies to contracts for the sale of

real property requires " an adequate description of the property, a recital of

the consideration an(] the signature of the party to be charged." See Zuk v.

Zuk, 55 A.3d 1.02, :107 ( Pa Super Court 2012).

      Judge McFadden's concise summary judgment order of July 9, 2019,

succinctly noted than the claims for specific performance must fail because

none of the agreements provide an adequate description of the properties to

be conveyed.   Therefore, Counts I, III, V, VII and VII were dismissed.     We

agree. with .judge McFadden's assessment.     No additional discussion is

required.

                                       14
      Our summary .
                  judgment order dated July 15, 2020, dismissed Counts

IV and VI for different violations of the Statute of Frauds. We feel

comfortable resting upon our Order with its detailed Statement of Reasons in

support thereof.   However, by way of aquick summary: Count IV was

dismissed as the Embassy Pad Agreement was totally silent as to the

property to be conveyed. Although Section 1.01 of the agreement purported

to identify the parcel to be convey, the description merely referenced an

"Exhibit A." Further, Section 1.01 did not provide any identification as to

what Exhibit A was intended to be as there was no reference to a deed,

engineering plan, tax map, or a rneets and bounds description.

Additionally, no Exhibit A was attached to agreement or otherwise produced

in discc;very, Therefore, as the parties made no attempt to identify or

describe the property to be convey, the Embassy agreement was not

enforceable. in addition, we dismissed Count VI because the alleged

agreement was not signed by Defendant. The McDonald's agreement was

signed by Plaintiff's Owner/Managing Member, Mr. Thaler. The signature line

for Defendant: contained the purported signature of Louis P. Pektor.

Discovery confirmed that Mr. Pektor was not an owner, managing member,

or an rmpioyee of Defendant 7065-A William Penn Highway, LLC.          Further,

no written agency agreement existed.        Therefore, the McDonald's Pad

agreement was not enforceable under the Statute of Frauds.

                                       15
         Next, we are not aware of any Order entered in this docket dated July

22, 201.9, which precluded the testimony of Peter Terry, P.E. as an expert

witness.    See Statement of Matters at ¶ 15. We can find no Order

addressing this issue. We know nothing about the wiliness, his participation

in this controversy, nor could we find a report which set forth his expert

opinion.

         Finally, as to the complaint that we abused our discretion in denying

Plaintiff's procedurally defective request for a continuance on the eve of trial,

one need only review that Memorandum opinion which set forth in detail the

course of events supporting our denial of the continuance request. Supra at

5-1.2.     We stand on the factual record in support of our exercise of

discretion in denying the last minute continuance request, for a non-

emergency based solely upon Plaintiff's fear of Covid.

         We respectfully submit, that all dispositive orders entered in this

mutter are well founded and supported by case law.        Further, the denial of

the continuance request: was not an abuse of discretion.

                                               BY THE COURT:

                                               STEPHEN G. BARATTA, J.

                                          16