Caterpillar Financial Services v. Get Er Done

2022 Pa. Super. 196, 286 A.3d 302
Superior Court of Pennsylvania·Decided November 18, 2022·No. 202 WDA 2021·Published·Cited by 7 cases

Opinion

2022 PA Super 196

CATERPILLAR FINANCIAL SERVICES : IN THE SUPERIOR COURT OF CORPORATION : PENNSYLVANIA :

Appellee :

v. :

:

GET ER DONE DRILLING, INC. :

:

Appellant : No. 202 WDA 2021 :

Appeal from the Judgment Dated January 11, 2021 In the Court of Common Pleas of Greene County Civil Division at No(s):

A.D. No. 206 of 2018

BEFORE: BENDER, P.J.E., LAZARUS, J., and McCAFFERY, J. OPINION BY LAZARUS, J.: FILED: NOVEMBER 18, 2022 Get ‘Er Done Drilling, Inc. (“Get ‘Er Done”) appeals from the judgment, entered in the Court of Common Pleas of Greene County, denying its motion for summary judgment, granting the motion for summary judgment filed by Caterpillar Financial Services Corporation (“Caterpillar”), and entering judgment in favor of Caterpillar. Upon careful review, we affirm.

The trial court set forth the relevant background of this matter as follows:

[Get ‘Er Done] entered into an installment sale contract on June 19, 2014 with Cleveland Brothers Equipment Co, Inc., for the purchase of [a hydraulic excavator]. Cleveland Brothers then assigned its rights under [the] agreement to [Caterpillar].

Additionally, on June 28, 2015, [Get ‘Er Done] entered into a master loan and security agreement with [Caterpillar] for the purchase of [a Ditch Witch directional drill]. . . . [Get ‘Er Done]

made only a portion of the payments owed and eventually surrendered [both pieces of equipment] to [Caterpillar,] which exercised its right as a secured creditor to sell the equipment and

apply the proceeds from the sale to [Get ‘Er Done’s] debt.

[Following the sale of the equipment, Caterpillar claimed deficiencies on the excavator in the amount of $47,647.44 and on the directional drill in the amount of $447,335.35. As a result, Caterpillar] filed suit claiming breach of contract for [Get ‘Er Done’s] failure to make payments under the first and second security agreements (Counts I and II), and [for] unjust enrichment, for [Get ‘Er Done] retaining “the financial benefits that [it] derived only by virtue of [Caterpillar’s] financial efforts.”

Trial Court Order, 1/11/21, at 1-2 (unnecessary capitalization and citation to record omitted).

Get ‘Er Done filed an answer, new matter, and counterclaims for fraud, breach of fiduciary duty, breach of contract and conversion. Caterpillar filed preliminary objections, after which the trial court struck Get ‘Er Done’s counterclaims for fraud, breach of fiduciary duty, and one count of breach of contract. On February 25, 2019, Get ‘Er Done filed an amended counterclaim, asserting claims for breach of contract and conversion, in response to which Caterpillar filed an answer and new matter. Following discovery, which the court extended by six months at Get ‘Er Done’s request, both parties filed motions for summary judgment with accompanying briefs.

After oral argument, the trial court denied Get ‘Er Done’s motion for summary judgment, dismissed its remaining counterclaims, and granted Caterpillar’s motion for summary judgment. The court entered judgment in favor of Caterpillar as follows: (1) the amount of $38,337.03, plus interest, on the first security agreement; (2) the amount of $491,024.65, plus interest, on the second security agreement; and (3) costs of suit. See Trial Court Order, 1/11/21, at 8.

On January 21, 2021, Get ‘Er Done filed a motion for reconsideration and, on January 22, 2021, filed a separate motion for reconsideration and motion to strike the affidavit of Duane Hronik.1 Caterpillar opposed both motions. On February 9, 2021, Get ‘Er Done filed a timely notice of appeal, followed by a court-ordered Pa.R.A.P. 1925(b) concise statement of errors complained of on appeal. The court did not rule on Get ‘Er Done’s motions for reconsideration. Get ‘Er Done now raises the following claims for our review:

1. Did the [trial] court err in considering inadmissible and unsupported opinion [] and hearsay evidence at summary judgment from undisclosed witnesses?

2. Did the [trial] court err in relying on evidence which was clearly controverted by evidence of [Get ‘Er Done]?

3. Did the [trial] court err in finding the sale of [Get ‘Er Done’s]

AT60 drill was public?

4. Did the [trial] court err in [sic] the sale of [Get ‘Er Done’s]

equipment was done with sufficient [sic] to [Get ‘Er Done]?

Brief of Appellant, at 12 (renumbered for ease of disposition; unnecessary capitalization omitted).

In reviewing an order granting summary judgment, our scope of review is plenary, and our standard of review is the same as that applied by the trial court. Our Supreme Court has stated the applicable standard of review as follows: [A]n appellate court may reverse the entry of summary judgment only where it finds that the lower court erred in concluding that the matter presented no genuine issue as to any material fact and that it is clear that the moving party was entitled to a judgment as a matter of law. In making this assessment, we review the record in the light most favorable to the nonmoving party, and all doubts as to the

1 Hronik is a senior paralegal at Iron Planet, Inc., the online marketplace through which Caterpillar auctioned the Ditch Witch Directional Drill.

existence of a genuine issue of material fact must be resolved against the moving party. As our inquiry involves solely questions of law, our review is de novo.

Therefore, our responsibility as an appellate court is to determine whether the record either establishes that the material facts are undisputed or contains insufficient evidence of facts to make out a prima facie cause of action, such that there is no issue to be decided by the fact-finder. If there is evidence that would allow a fact-finder to render a verdict in favor of the non-moving party, then summary judgment should be denied.

Patel v. Kandola Real Estate, LP, 271 A.3d 421, 426 (Pa. Super. 2021) (citation omitted).

To survive a motion for summary judgment, the non-moving party may not rely merely upon the controverted allegations of the pleadings, “but must set forth specific facts by way of affidavit, or in some other way as provided by the rule, demonstrating that a genuine issue exists.” Salerno v. Philadelphia Newspapers, Inc., 546 A.2d 1168, 1171 (Pa. Super. 1988)

Get ‘Er Done first asserts that the trial court erred in considering inadmissible and unsupported opinion and hearsay evidence from undisclosed witnesses. Specifically, Get ‘Er Done challenges two affidavits submitted by Caterpillar in support of its motion for summary judgment. The first affidavit was provided by Stephanie Floyd, a Special Accounts Representative II at Caterpillar, and set forth information regarding the parties’ security agreements, Get ‘Er Done’s default thereon, and the amounts owed as a result of the defaults. The second affidavit was executed by Duane Hronik, a senior paralegal at Iron Planet, Inc., the online marketplace through which Caterpillar

auctioned the Ditch Witch directional drill. Hronik’s affidavit set forth the details of the online auction.

Get ‘Er Done argues that the affidavits are “wrought with evidentiary issues and should not have been afforded any weight or consideration.” Brief of Appellant, at 21. In particular, Get ‘Er Done claims that the affidavits do not comply with the “strict requirements concerning affidavits [that] are used in support of a motion for summary judgment.” Id. at 22. Get ‘Er Done asserts that “the affiants did not testify as to the preparation or storage or accuracy of the records” they relied upon in their affidavits, such as would “justify a presumption of trustworthiness.” Id. at 23. Accordingly, Get ‘Er Done argues that the trial court erred in relying upon the affidavits in granting summary judgment in favor of Caterpillar. Finally, Get ‘Er Done claims that Caterpillar did not disclose the identity of the affiants during discovery, which would “prevent them from testifying under Pa.R.C.P. 4019(i).” Id. at 24.

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Caterpillar Financial Services v. Get Er Done, 2022 Pa. Super. 196, 286 A.3d 302 (Pa. Ct. App. 2022).

2022 Pa. Super. 196 (Caterpillar Financial Services v. Get Er Done) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Caterpillar Financial Services v. Get Er Done
2022 Pa. Super. 196 (Superior Court of Pennsylvania, 2022)