1833 S. 22nd LLC v. Virtu Capital

CourtSuperior Court of Pennsylvania
DecidedJanuary 27, 2026
Docket3238 EDA 2024
StatusUnpublished
AuthorFord Elliott

This text of 1833 S. 22nd LLC v. Virtu Capital (1833 S. 22nd LLC v. Virtu Capital) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
1833 S. 22nd LLC v. Virtu Capital, (Pa. Ct. App. 2026).

Opinion

J-A20043-25

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT O.P. 65.37

1833 S. 22ND, LLC, 1931 : IN THE SUPERIOR COURT OF BEECHWOOD, LLC, 2109 PIERCE, : PENNSYLVANIA LLC, 5102 LARCHWOOD, LLC, 2224 : CROSS, LLC, THEOLEV, LLC, : VCPMAJEM, LLC, VCPMDM, LLC, : VCPEM, LLC, CHAPEYLEV, LLC, 2115 : 63RD, LLC, EMMM INVESTEMENTS, : LLC, MAJEM HOLDINGS, LLC, : LEVENTURES, LLC, SAG : No. 3238 EDA 2024 MANAGEMENT, LLC, 1826 FERNON, : LLC, 2023 OPAL, LLC, 2111 PIERCE, : LLC, 2113 PIERCE, LLC, 1701 POINT : BREEZE, LLC, 2210 SIGEL, LLC, 2212 : SIGEL, LLC, 5035 SPRINGFIELD, : LLC, 4815 WALTON, LLC, 2821 : WINTON, LLC, 1932 BEECHWOOD, : LLC, 1831 S. 22ND, LLC, 2410 : MIFFLIN, LLC, 5252 CEDAR, LLC, : 1945 WOODSTOCK, LLC, 2209 : SIGEL, LLC, 1535 WOODSTOCK, LLC, : 1515 LAMBERT, LLC, 1941 PIERCE, : LLC, 1538 S. TANEY, LLC, 2830 : WINTON, LLC, MICHAEL MILLER : : : v. : : : VIRTU CAPITAL PARTNERS, ICON : CONSTRUCTION GROUP, LLC, ICON : REALTY GROUP, ICON REALTY : GROUP, LLC, KENNAI VC : INVESTMENTS, LLC, AZKICKER, LLC, : KENNAI MDM INVESTMENTS, LLC, : TIMOTHY LEBOLD, KUDOS REAL : ESTATE, LLC : : : APPEAL OF: TIMOTHY LEBOLD :

Appeal from the Order Entered October 21, 2024 J-A20043-25

In the Court of Common Pleas of Philadelphia County Civil Division at No(s): 210400098

BEFORE: MURRAY, J., McLAUGHLIN, J., and FORD ELLIOTT, P.J.E. *

MEMORANDUM BY FORD ELLIOTT, P.J.E.: FILED JANUARY 27, 2026

Timothy Lebold, one of several defendants in this case, appeals the

denial of his petition to strike/open the default judgment entered in the Court

of Common Pleas of Philadelphia County. Lebold raises challenges to: (1)

effective notice of the default judgment; (2) the trial court’s order for Lebold

to retain counsel or be subject to default; (3) the court’s conclusion that

Lebold failed to satisfy the three prongs necessary for opening a default

judgment; and (4) the denial of his continuance request of the assessment of

damages hearing. We find no relief is due and, therefore, affirm.

The trial court set forth the facts of this case as follows:

Plaintiffs and Counterclaim Defendants 1833 S. 22nd LLC, 1931 Beechwood LLC, 2109 Pierce LLC, 5102 Larchwood LLC, 2224 Cross LLC, 1826 Fernon LLC, 2023 Opal LLC, 2111 Pierce LLC, 2113 Pierce LLC, 1701 Point Breeze LLC, 2210 Sigel LLC, 2212 Sigel LLC, 5035 Springfield LLC, 4815 Walton LLC, 2821 Winton LLC, 1932 Beechwood LLC, 1831 S 22nd LLC, 2410 Mifflin LLC, 5252 Cedar LLC, 1945 Woodstock LLC, 2209 Sigel LLC, 1535 Woodstock LLC, 1515 Lambert LLC, 1941 Pierce LLC, 1538 S Taney LLC, 2830 Winton LLC, Michael Miller, THEOLEV LLC, VCPMAJEM LLC, VCPMDM LLC, VCPEM LLC, and CHAPEYLEV LLC (“Plaintiffs”) commenced this action in April 2021 for breach of contract, fraudulent misrepresentation, negligent misrepresentation, negligence, conversion, unjust enrichment, piercing the corporate veil, and accounting[,] based on an alleged fraudulent scheme perpetrated by [] Lebold and entities he ____________________________________________

* Retired Senior Judge assigned to the Superior Court.

-2- J-A20043-25

controlled stemming from a real estate venture between [] Lebold and [] Miller.

Since the commencement of the proceedings, [Virtu Capital Partners, Icon Construction Group, LLC, Icon Realty Group, Icon Realty Group, LLC, Kennai VC Investments, LLC, Kennai MDM Investments, LLC, Kudos Real Estate, LLC, AzKicker, LLC, and Lebold (“Defendants”)] have caused continual delays through their refusal to properly secure counsel. Specifically, Defendants’ refusal to pay their attorneys led to the withdrawal of two separate law firms.

When the court granted the petition to withdraw as counsel of the second firm on December 13, 2023, it denied a request for a stay of the proceedings and ordered Defendants to find replacement counsel within ten days or face default judgment. Defendants never did so. On January 24, 2024, Plaintiffs filed a motion for default judgment and served it on both Defendants’ historical addresses as well as the new addresses provided by Defendants’ former counsel.

On February 5, 2024, Plaintiffs served Defendants with their pre- trial memo[randum], again at both Defendants’ historic and new addresses via certified and first-class mail. On February 14, 2024, [] Lebold sent correspondence to Plaintiffs’ counsel with the letterhead reflecting the Philadelphia address used by Plaintiffs for service. After Defendants failed to secure counsel or seek a continuance by the court’s December 23, 2024 deadline, the court waited nearly 60 days before entering default judgment on February 16, 2024 and setting a damages hearing for March 20, 2024. Plaintiffs served the February 16, 2024 order via first-class mail at Defendants’ historic and new addresses as well as by email to [] Lebold. Finally, nearly three months after the court’s deadline had passed, [] Lebold filed a motion on March 14, 2024, days before the scheduled damages hearing, seeking a continua[nce]. The court denied this request on March 19, 2024. On March 20, 2024[,] the court entered an assessment of damages order awarding Plaintiffs a total of $2,710,303.65 in compensatory and punitive damages. Nearly six months later, Defendants filed a motion to strike or open the default judgment[, on August 29, 2024].

Trial Court Opinion, 2/21/25, at 1-3 (unnecessary capitalization and record

citations omitted).

-3- J-A20043-25

The trial court denied Defendants’ petition to strike/open the default

judgment on October 21, 2024. On November 20, 2024, Lebold timely

appealed. Thereafter, Lebold and the trial court complied with Pennsylvania

Rule of Appellate Procedure 1925. On appeal, and now represented by

counsel, Lebold presents the following issues for our review, which we have

reordered for ease of disposition:

1. Whether [the] trial court erred as a matter of law in denying the [petition] to strike/open default judgment where the [Plaintiffs] failed to give the requisite 10-day notice required by [Pennsylvania Rule of Civil Procedure] 237.1 substantially in the form prescribed by [Pennsylvania Rule of Civil Procedure] 237.5 prior to the entry of default judgment.

2. Whether the trial court erred as a matter of law in denying the [petition] to strike/open default judgment where the default judgment was improperly entered against [Lebold as an] individual [defendant] when his filed answer, counterclaims[,] and joinder complaint were stricken for not retaining counsel in violation of 42 Pa.C.S. § 2501(a).

3. Whether the trial court abused its discretion in denying the [petition] to strike/open default judgment when it failed to consider exigent circumstances of [the Defendants] in determining the timeliness of the petition and when no prejudice has been shown by [Plaintiffs].

4. Whether the trial court abused its discretion in denying the [petition] to strike/open default judgment because it failed to consider the affirmative claims asserted in [Defendants’] answer, new matter, and counterclaims and their meritorious defenses raised in the answer and new matter and summary judgment motion filed on April 5, 2023.

5. Whether the trial court abused its discretion in den[ying] the [petition] to strike/open default judgment when [the] trial court denied [] Lebold’s reasonable request for a continuance of the assessment of damages hearing filed on March 14, 2024, due to medical reasons.

-4- J-A20043-25

Appellant’s Brief, at 2-3 (unnecessary capitalization and suggested answers

omitted).

Despite Lebold’s framing of the issues and their allegedly interrelated

nature, we note there is a distinction between claims raised via a petition to

strike as compared with those applicable to a petition to open. See U.K.

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1833 S. 22nd LLC v. Virtu Capital, Counsel Stack Legal Research, https://law.counselstack.com/opinion/1833-s-22nd-llc-v-virtu-capital-pasuperct-2026.