Consolidated Eagle, Ltd. v. BL GP, LLC

CourtSuperior Court of Pennsylvania
DecidedNovember 26, 2019
Docket407 EDA 2019
StatusUnpublished

This text of Consolidated Eagle, Ltd. v. BL GP, LLC (Consolidated Eagle, Ltd. v. BL GP, LLC) 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
Consolidated Eagle, Ltd. v. BL GP, LLC, (Pa. Ct. App. 2019).

Opinion

J-S49032-19

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

CONSOLIDATED EAGLE, LTD. : IN THE SUPERIOR COURT OF : PENNSYLVANIA Appellant : : : v. : : : BL GP, LLC, TRADING AS BL : No. 407 EDA 2019 PARTNERS GROUP, L.P.; 15 WA FIN : GP, LLC, TRADING AS BL 219 : PARTNERS, LP; PEARL PROPERTIES, : LLC; PEARL PROPERTIES : COMMERCIAL MANAGEMENT, LLC; : CHOICE HOTELS INTERNATIONAL, : INC.; AND ABC CORP. 1-5 :

Appeal from the Order Entered December 17, 2018 In the Court of Common Pleas of Philadelphia County Civil Division at No(s): June Term, 2018. No. 01684

BEFORE: BENDER, P.J.E., STABILE, J., and STEVENS, P.J.E.*

MEMORANDUM BY STEVENS, P.J.E.: FILED NOVEMBER 26, 2019

Appellant Consolidated Eagle, Ltd. (hereinafter Appellant) appeals from

the Order entered in the Court of Common Pleas of Philadelphia County on

December 17, 2018, denying its motion for preliminary injunction.1 Upon

careful review, we affirm.

____________________________________________

* Former Justice specially assigned to the Superior Court. 1 An order denying a preliminary injunction is immediately appealable as an interlocutory appeal as of right pursuant to Pa.R.A.P. 311(a)(4). J-S49032-19

The trial court set forth the facts and procedural history herein as

follows:

[Appellant] is the former owner of a real property located at 227-229 S. Broad St, Philadelphia. In 1987, [Appellant] sold the property to the Samuel Rappaport Partnership. [Appellant] maintained air rights over 227-229 S. Broad as part of the deal. However, the Samuel Rappaport Partnership was granted right of first refusal to buy these air rights in the future for $1,450,000. According to agreed terms, if the partnership or its successors decline to exercise right of first refusal, [Appellant] and successors may accept any bone fide offer. In August 2014, the Samuel Rappaport Partnership (and Samuel Rappaport's estate) sold the 227-229 S. Broad St. property to BL Partners. According to the Complaint, [Appellant] began negotiations in January 2018 with TCS South Broad Associates, LLC ("TCS") to sell these air rights. By then a new Center City hotel called the Cambria had been constructed by BL Partners on the 219-225 S. Broad Street parcels. The Cambria's south windows overlook the rooftop relevant to this case at 227-229 S. Broad Street. In addition to 227-229 S. Broad Street, BL Partners owns the next door three story corner building at 221 S. Broad Street. According to the Complaint, in late February 2018, [Appellant] agreed to sell the air rights to TCS for $1,500,000 contingent on whether BL Partners exercised its right of first refusal. At some point, BL Partners objected to the proposed sale. As a result, this commercial dispute developed over the air rights. The Complaint alleges that sometime later in the spring of 2018, [Appellant’s] representatives observed that air conditioning equipment had been installed on the roof of 227-229 S. Broad St. The Complaint also alleges that the Cambria building's cantilevers and balconies encroach on the disputed air space. Following a hearing, [Appellant’s] petition for preliminary injunction was denied on December 17, 2018.1 ___

1In its Complaint, [Appellant] avers five causes of action: (1) breach of contract/permanent injunctive relief (2) declaratory relief, (3) tortious interference, (4) tortious interference, and (5) trespass.

-2- J-S49032-19

Trial Court Opinion, filed 5/6/19, at 1-2 (tortious interference listed twice in

original).

The trial court’s December 17, 2018, Order followed Appellant’s filing of

its Petition for a Preliminary Injunction on July 12, 2018. Therein, Appellant

sought to compel BL GP, LLC, Trading as BL Partners Group, L.P.; 15 WA FIN

GP, LLC, trading as BL 219 Partners, L.P.; Pearl Properties, LLC; Pearl

Properties Commercial Management, LLC; Choice Hotels International, Inc.;

and ABC Corp. 1-5 (hereinafter collectively Appellees) to, inter alia, remove

what it deems to be various encroachments from its air rights pertaining to

the 227-229 S. Broad Street property. Id. at ¶ 5. These items include

“several air conditioning condensers, an electric junction box, HVAC duct work,

a massive generator, and other equipment and appurtenances. . . .” Id. at ¶

52. Appellant further maintained that “[i]t also appeared to the naked eye

that architectural elements of the Hotel itself, including cantilevers and

balconies, also encroach upon and violate the Air Rights (the “Additional

Encroaching Improvements” and together with the Encroaching

Improvements, the “Encroaching Improvements”).” Id. at ¶ 54. Appellant

alleged that a survey confirmed the existence of the encroaching

improvements. Id. at ¶ 63.

Specifically, Appellant stated:

64. In particular, it has now been confirmed that one (1) massive generator, three (3)(of 6) A/C Units, an electric junction box, a steel girder, and two (2) exhaust fans, each existing for the

-3- J-S49032-19

use and benefit of the Hotel (rather than the Subject Property) exist within and encroach upon the Air Rights. See Exhibit 16.

65. In addition it has also been confirmed that the Hotel structure itself encroaches upon the Air Rights for a length of approximately forty-one (41’) feet (or approximately 31% of the length of the Air Rights) by as much as 1 foot. See Exhibit 16.

Id. at ¶¶ 64-65.

As a result, Appellant sought the “immediate removal of the Encroaching

Improvements” along with an “Order confirming that the Right of First Refusal

has lapsed.” Id. at ¶ 66.2

In its aforementioned Order entered on December 17, 2018, the trial

court denied Appellant’s request. A footnote to the Order reads as follows:

1[Appellant] failed to proffer evidence of irreparable harm to its air rights arising from alleged encroachments, consisting of a generator, three A/C/ [sic] units, a steel girder and two exhaust fans resting on the roof of the existing building at 227-229 S. Broad Street. (See Paragraph 64 of [Appellant’s] Petition for Preliminary Injunction). If declaratory judgment is found in favor of [Appellant], relocating these objects will be addressed and ordered. Nothing about them presently requires emergency injunctive relief. [Appellant] claims that a separate encroachment to its air rights is caused by cantilevers and balconies of the new Cambria Hotel invading [Appellant’s] air rights. However, [Appellees] have a right of first refusal to purchase these air rights in the event the encroachments are founded. Whether such encroachment exists is a factual subject for trial. But on the legal question whether a

2 In an apparent typographical error, the petition contains numbered paragraphs one through sixty-six up to page sixteen at which time the paragraphs begin with number sixty-two and numerically follow through eighty-five thereafter, ending on page twenty-one. The above citations are from the first set of paragraphs numbered sixty-four, sixty-five and sixty-six found on page sixteen.

-4- J-S49032-19

bona fide offer has already been made, [Appellant] has not shown a likelihood of success meriting injunctive relief.

Trial Court Order entered 12/17/18, at n. 1.

Appellant filed a timely notice of appeal on January 16, 2019. The trial

court did not order, and Appellant did not file, a concise statement of the

errors complained of on appeal pursuant to Pa.R.A.P. 1925(b). However, as

previously cited, the trial court filed a Rule 1925(a) Opinion on May 6, 2019.

In its appellate brief, Appellant presents six issues for this Court’s

review:

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