Batoff v. Charbonneau

130 F. Supp. 3d 957, 2015 U.S. Dist. LEXIS 123336, 2015 WL 5460571
CourtDistrict Court, E.D. Pennsylvania
DecidedSeptember 16, 2015
DocketCIVIL ACTION NO. 14-6879
StatusPublished
Cited by3 cases

This text of 130 F. Supp. 3d 957 (Batoff v. Charbonneau) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Batoff v. Charbonneau, 130 F. Supp. 3d 957, 2015 U.S. Dist. LEXIS 123336, 2015 WL 5460571 (E.D. Pa. 2015).

Opinion

MEMORANDUM

YOHN., District Judge

On April 4, 2012, defendants Julie Charbonneau and Dean - Topolinski were living as tenants at Bloomfield, a historic home in Villanova, Pennsylvania, when a fire destroyed the property. Charbonneau sub[961]*961sequently attempted to exercise an option under the lease to purchase Bloomfield from plaintiff Jerald Batoff, the property’s owner. During roughly the same period of time, Batoff was negotiating with his.insurer, Chartis Property Casualty Company, which ultimately agreed to pay him $18.5 million (plus additional payments already made). Batoff, in turn, agreed to indemnify Chartis t against any future claims arising out -of the fire. Several rounds of litigation ensued between Batoff and the tenants, leading to a mediated settlement agreement which resulted in a mutual release and the tenants receiving $11 million of the $18.5 million, as well as title to Bloomfield. Charbonneau then filed suit against Chartis, claiming that she had been wrongly denied millions of dollars in additional insurance proceeds. In response, Batoff filed this action against the tenants, alleging breach of contract, fraud, conspiracy, and unjust enrichment. Defendants moved to dismiss. Because Batoff has ¿dequately pleaded all but two of his claims, I will grant the motion in part and deny it in part..

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY1

In January 2011, Jerald Batoff began attempting to sell Bloomfield, a historic house and grounds that he owned in Villa-nova, Pennsylvania. First Am. CompL (“FAC”) ¶ 29.2 As part of • this process, Batoff met with potential buyers Julie Charbonneau and Dean Topolinski in March of 2011. Id. ¶31. During this meeting, Topolinski inquired about the homeowner’s insurance then - covering Bloomfield, and Batoff provided him with a copy of the policy he held with Chartis Property Casualty Company. Id. Under this policy, Bloomfield was covered in the event of a casualty up to either $22,372,762 or the total cost of rebuilding the property, known as the “Guaranteed Rebuilding Cost.” Id. ¶ 2. On March 16, 2011, Topolinski agreed to purchase Bloomfield for $5,200,000 — plus a cash deposit of $260,-000 — -with closing set for August 1, 2011. Id. ¶ 33. On July 29, 2011, however, Topolinski told Batoff that he did not have enough available funds to close on Bloomfield as planned. Id. Instead, Batoff and Topolinski entered into a second agreement of sale on August 1, 2011, with closing set for October 31, 2011, and Topolinski wired a $999,985 deposit to Batoff. Id. ¶¶ 35-36. The new purchase price for Bloomfield was set at $3.9 million, accounting for the two deposits. Id. ¶ 36.

That same day, Topolinski also agreed to lease Bloomfield from Batoff in advance of the anticipated closing. Id. ¶ 37. Topolinski specifically ensured that Batoff would continue to pay the homeowner’s insurance premiums, throughout the lease period. Id. ¶ 38. Charbonneau and Topolinski then took residence at Bloomfield, before Topolinski was unable to close for a second time. Id. ¶ 40. On or around November 14, 2011, Batoff and Charbonneau signed a new, five-year lease-option agreement (“LOA”) for Bloomfield.. Id. ¶¶ 47-48.3 Under the LOA Charbonneau had [962]*962the option to purchase Bloomfield during the lease period for $3.9 million, upon payment of a non-refundable $900,000 deposit. Id. ¶ 48. The LOA further provided that, in the event that Bloomfield suffered- a casualty during the lease period costing more than $1 million to repair, Charbonneau could likewise exercise her option, and that she would also be “entitled to receive at closing a credit in the amount of any insurance proceeds paid to [Batoff], and an assignment [of Batoff s] rights to receive any unpaid proceeds.” Id. ¶49. The same clause stated that “[l]andlord may make proof of loss; provided, however, that any adjustment of a proof of loss shall require the prior written consent of Tenant, which shall not be unreasonably withheld or delayed.” Id. Topolinski-later wrote out and signed a “joinder” of the LOA, stating that he “join[s] in as a party to the [LOA] ... as a guarantor.” Id. ¶ 56 (citing id. Ex. E).

At 2:30 pm on April 4, 2012, plaintiff alleges Bloomfield was consumed and destroyed by fire. Id. ¶ 63. Topolinski subsequently requested a copy of Batoffs homeowner’s insurance policy with Chartis. Id. ¶ 68. The policy provided for a coverage limit for Bloomfield of $22,373,762. Id. ¶ 69. The policy further states that, under its “Guaranteed Rebuilding Cost” provision, Chartis “will pay the reconstruction cost of your house or other permanent structure, for each occurrence, even if this amount is greater than the amount of coverage shown on the Declarations Page.” Id. A payment of the Guaranteed Rebuilding Cost, however, requires that “you must repair or rebuild your home or other permanent structure at the same location.” Id. On April 8, 2012, Batoff, Charbonneau, and Topolinski retained the public adjusting firm Clarke & Cohen to assist with filing their respecfive insurance claims arising out of the fire. Id. ¶ 70.

On July 25, 2012, Batoff sent á letter to Charbonneau, stating that she was in default under the LOA and that “no binding Option to purchase the property was ever in existence.” Id. ¶ 74. Charbonneau responded with a letter to Batoff on August 7, 2012, attempting to cure the alleged default and exercise her option under the LOA. Id. ¶ 75. In that letter, Charbonneau demanded that closing on'the sale of Bloomfield be set for September 8, 2012. Id. ¶ 76. In response, on August 15, 2012, Batoff sued Charbonneau and Topolinski in the Delaware County Court of Common Pleas, and the case was subsequently removed to this district. Id. ¶¶ 78-79; see also Batoff v. Charbonneau (Batoff I), No. 12-cv-5397-WY (E.D.Pa. Sept. 21, 2012).

On October 1, 2012, Chartis and Batoff reached a settlement of Batoffs insurance claim, under which Chartis agreed to pay a total of $20.5 million (including certain payments already made). FAC ¶ 80. The same day, Charbonneau and Topolinski filed counterclaims in Batoff I, seeking in part specific performance on the sale of Bloomfield and a declaration of their right to participate in the adjustment of the Chartis homeowner’s insurance claim. Id. ¶81. On or about October 16, 2012, Ba-toffs counsel notified Charbonneau and Topolinski that Batoff had settled his claim with Chartis. Id. ¶82. On October 22, 2012, Charbonneau and Topolinski filed amended counterclaims in Batoff I, seeking, inter alia, $14 million in lost insurance proceeds because Batoff-had settled his Chartis claim without their consent and without seeking what they alleged to be the full cost of rebuilding Bloomfield, approximately $35 million. Id. ¶ 85. Charbonneau and Topolinski also sought a tem-' [963]*963porary restraining order to freeze the Chartis policy proceeds, which was granted. Id. ¶ 86.

On November 29, 2012, Batoff filed a second suit against Charbonneau and Topolinski. Id. ¶ 87; see also Batoff v. Topolinski (Batoff II), No. 12-cv-6673-WY, 2012 WL 5974310 (E.D.Pa. Nov. 29, 2012). In that case, Batoff claimed that Charbonneau and Topolinski committed arson and intentionally destroyed Bloomfield. FAC ¶88. Batoff I and.

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130 F. Supp. 3d 957, 2015 U.S. Dist. LEXIS 123336, 2015 WL 5460571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/batoff-v-charbonneau-paed-2015.