Berry v. Van Why

46 Pa. D. & C.4th 312, 2000 Pa. Dist. & Cnty. Dec. LEXIS 312
Pennsylvania Court of Common Pleas, Monroe County·Decided January 14, 2000·No. no. 7124 Civil 1999·Published

Opinion

CHESLOCK, J.,

Plaintiff commenced this action by filing a complaint on September 23, 1999. On October 27, 1999, defendant filed an answer, new matter and counterclaim to said complaint. Plaintiff filed prehminary objections to defendant’s counterclaim on November 15, 1999 and a memorandum of law in support thereof on December 27, 1999. On January 3, 2000, defendant filed a brief in opposition to the preliminary objections. Oral argument was heard before this court on January 3, 2000. We are now ready to dispose of plaintiff’s preliminary objections.

Initially, we must set forth the particular facts of this case. On June 1, 1998, plaintiff, Arthur Berry III, and Pocono Entertainment Company Inc. entered into a com[314] mercial lease agreement with an option to purchase.1 Defendant, Joseph Van Why, is a shareholder of the corporation. In conjunction with the lease, defendant executed an agreement of unconditional guaranty. Under the guaranty, defendant agreed to be personally liable for the corporation’s indebtedness under the lease.

In late 1999, the corporation defaulted on its rental payments.2 On April 12, 1999, plaintiff filed a confession of judgment against the corporation for approximately $48,300.3 During the corporation’s appeals process,4 it filed for Chapter 7 bankruptcy. Thereafter, plaintiff instituted the instant action against defendant pursuant to the guaranty.

Defendant’s counterclaim alleges that plaintiff tor-tiously interfered with the corporation’s contractual and business relations. Prior to the filing of the confession of [315] judgment, the corporation had entered into an agreement to sell the commercial real estate, subject of the lease, to a third party, Leonard Tagliavia, for $500,000. The corporation’s option purchase price under the lease was $375,000. Thus, the corporation would have gained a profit of $125,000 if the corporation/Tagliavia agreement had been executed. Defendant alleges that plaintiff knew of the corporation/Tagliavia agreement and filed the confession of judgment with the sole purpose of regaining possession of the property in order to sell said property to Tagliavia and receive the $125,000 profit.5 Plaintiff sold the real estate to Tagliavia.6

Plaintiff raises the following preliminary objections to defendant’s counterclaim: (1) a preliminary objection in the nature of a demurrer to defendant’s counterclaim; (2) a preliminary objection in the nature of a demurrer to defendant’s demand of attorney’s fees and punitive damages; (3) a motion to strike the complaint for lack of conformity to 42 Pa.C.S. §25039; and (4) a motion to strike for lack of conformity to Pennsylvania Rule of Civil Procedure 1028(2). We will discuss each objection in turn.

[316] Plaintiff’s first preliminary objection is in the nature of a demurrer to the counterclaim. “[A] demurrer is a preliminary objection that the pleadings fail to set forth a cause of action upon which relief can be granted under any theory of law.” Sutton v. Miller, 405 Pa. Super. 213, 221, 592 A.2d 83, 87 (1991). (emphasis in original) It will not be sustained unless the law says with certainty that no recovery is possible. Hull v. Rose, Schmidt, Hasley & DiSalle PC., 700 A.2d 996, 998 (Pa. Super. 1997). All material facts set forth in the complaint, as well as inferences reasonably deducible therefrom, are admitted as true. Webb Manufacturing Co. v. Sinoff, 449 Pa. Super. 534, 674 A.2d 723 (1996); Clifton v. Suburban Cable TV Co. Inc., 434 Pa. Super. 139, 142, 642 A.2d 512, 514 (1994). However, the court need not accept as true conclusions of law, unwarranted inferences from the facts, argumentative allegations, or expressions of opinion. Penn Title Insurance Co. v. Deshler, 661 A.2d 461 (Pa. Commw. 1995), allocatur denied, 543 Pa. 699, 670 A.2d 145 (1995). In addition, a demurrer can only be granted in cases that are clear and free from doubt, and any doubt must be resolved against the non-moving party. Mellon Bank N.A. v. Fabinyi, 437 Pa. Super. 559, 650 A.2d 895 (1994).

Plaintiff contends that defendant does not have standing to bring an individual suit against the plaintiff and therefore, the counterclaim must be dismissed. Thus, we must address whether defendant, a shareholder of the corporation, has standing to sue the plaintiff for tortious interference with the corporation/Tagliavia agreement.

A corporation is “distinct and separate from the individual shareholders. It has a real existence with rights [317] and liabilities as a separate legal entity.” U.S. v. Sain, 141 F.3d 463, 474 (3d Cir. 1998), cert. denied, 119 U.S. 190. This is true even if a single individual owns and controls all of the corporation’s stock. Id. at 474. Thus, a shareholder, director, officer or employee does not have standing as an individual to bring an action against third parties for damages that are derivative of harm to the corporation. Adjusters Inc. v. Computer Sciences Corp., 818 F. Supp. 120, 121 (E.D. Pa. 1993); see also, Tyler v. O’Neill, 994 F. Supp. 603, 609 (E.D. Pa. 1998). However, there two exceptions to the general rule. First, a cause of action arises and belongs to an individual shareholder where he or she has pled an injury separate and distinct from that suffered by the corporation. Temp-Way Corp. v. Continental Bank, 139 B.R. 299, 316-17, aff’d, 981 F.2d 1248 (3d Cir. 1992). Second, an individual shareholder may bring a direct claim against the wrongdoer where there is a special duty, such as a contractual duty between the wrongdoer and the individual shareholder. Adjusters Inc., 818 F. Supp. at 121; Temp-Way Corp., 139 B.R. at 317. The general test for determining whether an action asserts a direct or derivative claim is:

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Berry v. Van Why, 46 Pa. D. & C.4th 312, 2000 Pa. Dist. & Cnty. Dec. LEXIS 312 (Pa. Super. Ct. 2000).

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