Castle Reality v. Paul Lynch Investments

CourtSuperior Court of Pennsylvania
DecidedJune 15, 2023
Docket712 WDA 2022
StatusUnpublished

This text of Castle Reality v. Paul Lynch Investments (Castle Reality v. Paul Lynch Investments) 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
Castle Reality v. Paul Lynch Investments, (Pa. Ct. App. 2023).

Opinion

J-A06003-23

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT OP 65.37

CASTLE REALTY, LLC : IN THE SUPERIOR COURT OF : PENNSYLVANIA : v. : : : PAUL LYNCH INVESTMENTS, INC. : : Appellant : No. 712 WDA 2022

Appeal from the Order Entered May 19, 2022 In the Court of Common Pleas of Lawrence County Civil Division at No(s): No. 2019-10519

BEFORE: OLSON, J., NICHOLS, J., and PELLEGRINI, J.*

MEMORANDUM BY OLSON, J.: FILED: June 15, 2023

Appellant, Paul Lynch Investments, Inc., appeals from the May 19, 2022

order entered in the Court of Common Pleas of Lawrence County that made

final the January 13, 2022 order, pursuant to Pennsylvania Rule of Appellate

Procedure 341.1 In the January 13, 2022 order, the trial court granted

judgment on the pleadings in favor of Castle Realty in the amount of

$87,500.00, plus pre-judgment interest ($16,164.66), as well as

____________________________________________

* Retired Senior Judge assigned to the Superior Court.

1Rule 341 states that “an appeal may be taken as of right from any final order of a government unit or trial court.” Pa.R.A.P. 341(a). A “final order” is defined as, inter alia, an order that “disposes of all claims and of all parties[.]” Pa.R.A.P. 341(b)(1). Upon entry of the May 19, 2022 order, disposing of Appellant’s counterclaim against Castle Realty, LLC (“Castle Realty”), the January 13, 2022 order was rendered a final, appealable order. J-A06003-23

post-judgment interest.2 We affirm the January 13, 2022 order, in part, and

vacate the January 13, 2022 order, in part, and remand this case in

accordance with this memorandum.

The trial court summarized the factual history as follows:

[Castle Realty] is a real estate brokerage firm based in Lawrence County, Pennsylvania. [Appellant] engaged [Castle Realty] to market and sell two commercial properties owned by [Appellant] and located in Lawrence County, Pennsylvania.

On November 9, 2017, [Castle Realty] and [Appellant] entered into a commercial listing contract, granting [Castle Realty] the right to sell a logistics and shipping warehouse [(“Property #1”).] The contract to sell Property #1 [(“Contract #1”)] was for a period of one [] year, commencing on November 15, 2017, at a listing price of $600,000.00.

On January 11, 2018, [Castle Realty] and [Appellant] entered into another commercial listing contract, granting [Castle Realty] the right to sell [another building owned by Appellant (“Property #2”).] The contract to sell Property #2 [(“Contract #2”)] was for a period of one [] year, commencing on January 12, 2018, at a listing price of $1,350,000.00.

...

On July 29, 2018, [Castle Realty] received an offer from [a potential buyer] to purchase Property #2 for a price of $1,000,000.00. After presenting the offer to [Appellant] in August 2018, [Appellant] informed [Castle Realty] that the offer was too low. No further actions came of this exchange until [Castle Realty] learned that both properties had been sold by [Appellant]. Specifically, Property #1 was sold on October 18, 2018, to [Buyer #1] for $650,000.00 and Property #2 was sold on October 31, 2018[, to Buyer #2, who was the potential buyer that submitted an offer to Castle Realty on July 29, 2018 for the purchase of ____________________________________________

2 The January 13, 2022 order awarded Castle Realty post-judgment interest in the amount of $17.04 per day from November 23, 2021, until payment of the judgment. Trial Court Order, 1/13/22.

-2- J-A06003-23

Property #2. The sale of Property #2 to Buyer #2 was] part of a like-kind exchange, [netting] actual cash consideration of $1,100,000.00.

[Appellant] never informed [Castle Realty] of either sale and never paid [Castle Realty] a commission resulting from either sale.

Trial Court Opinion, 8/5/22, at 7-9.

On May 22, 2019, Castle Realty filed a complaint against Appellant,

setting forth claims of breach of contract (Count 1), conversion (Count 2),

and, in the alternative, unjust enrichment (Count 3). On July 8, 2019,

Appellant filed an answer to Castle Realty’s complaint, which raised new

matter as well as a counterclaim for breach of contract.3 Castle Realty filed a

response to Appellant’s answer, new matter and counterclaim on July 25,

2019.

3 As part of its new matter, Appellant asserted that Castle Realty “set a sale price of $600,000.00 on [Property #1] without any type of appraisal or assessment of the value of the property” and “made no attempt to document the fair market value of the property.” Appellant’s Answer, New Matter, and Counterclaim, 7/8/19, at ¶¶36-37. Appellant contends that it renovated the property, including installing a new roof, and that Appellant notified Castle Realty that “the listing price [was] no longer a fair listing price for the property and asked that the listing agreement be terminated until such time as [a] new lease could be negotiated with the tenant and a proper fair market value of the property could be made.” Id. at ¶40. Appellant avers that Castle Realty “had no understanding of the value of [Property #1] and did not attempt to revisit the site and evaluate the property value after the renovations were complete so that a new listing price and agreement could be entered into.” Id. at ¶45.

Appellant’s counterclaim was based upon a breach of an oral contract, whereby Appellant alleges “[Castle Realty] breached its oral agreement with [Appellant] to act as [Appellant’s] agent in the purchase of a [property unrelated to the properties involved in the instant case].” Id. at ¶57.

-3- J-A06003-23

On June 30, 2021, Castle Realty filed a motion for judgment on the

pleadings as to, inter alia, Count 1, and requested that Appellant’s

counterclaim be dismissed with prejudice on the ground, inter alia, that it was

untimely pursuant to the four-year statute of limitations. Motion for Judgment

on the Pleadings, 6/30/21, at ¶¶57-60. Appellant filed a response to Castle

Realty’s motion for judgment on the pleadings on September 28, 2021.

On November 23, 2021, the trial court granted judgment on the

pleadings in favor of Castle Realty in the amount of $35,000.00 on Count 1,

and dismissed Counts 2 and 3 of Castle Realty’s complaint with prejudice.

Trial Court Order, 11/23/21. In that same order, the trial court also dismissed

the claims Appellant raised in its new matter, but was silent as to Appellant’s

breach of contract counterclaim against Castle Realty. Id. On December 13,

2021, Castle Realty filed a motion for reconsideration, asserting that it was

entitled to judgment in the amount of $87,500.00, as well as pre-judgment

interest and post-judgment interest. On December 14, 2021, the trial court

entered an order permitting Appellant to file a response to Castle Realty’s

motion for reconsideration within 20 days of said order. Appellant filed a

response to Castle Realty’s motion for reconsideration on January 6, 2022.

On January 13, 2022, the trial court granted Castle Realty’s motion for

reconsideration, awarding judgment on Count 1 in the amount of $87,500.00,

as well as pre-judgment interest in the amount of $16,164.66 and

post-judgment interest at a rate of $17.04 per day from November 23, 2021,

-4- J-A06003-23

until the date judgment is paid.4 Trial Court Order, 1/13/22. On February 14,

2022, Appellant filed a notice of appeal, which was docketed in this Court at

201 WDA 2022.

On February 14, 2022, Castle Realty filed a praecipe for writ of

execution, seeking collection of the judgment in the amount of $105,546.98,

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Bluebook (online)
Castle Reality v. Paul Lynch Investments, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castle-reality-v-paul-lynch-investments-pasuperct-2023.