Department of General Services v. Firetree Ltd.

6 Pa. D. & C.5th 242
CourtPennsylvania Court of Common Pleas, Berks County
DecidedOctober 17, 2008
Docketno. 08-6671
StatusPublished

This text of 6 Pa. D. & C.5th 242 (Department of General Services v. Firetree Ltd.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Berks County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Department of General Services v. Firetree Ltd., 6 Pa. D. & C.5th 242 (Pa. Super. Ct. 2008).

Opinion

SCHMEHL, J.L., P.J.,

At issue is an appeal by defendant/appellant Firetree Ltd. from this court’s order of July 16, 2008.

I. BACKGROUND

On March 22, 2004, Firetree entered into a four-year written lease with the Department of General Services (DGS), so that Firetree could operate a drug and alcohol treatment and community correction center at the Wernersville State Hospital. On May 24 and 29,2007, DGS informed Firetree in writing that DGS was exercising its option not to renew the lease, which was proper notice under the terms of the lease and the law. On May 27, 2008, DGS filed a complaint and confession of judgment in ejectment against Firetree Ltd. for possession of buildings 18, 19, 27, 29 and 30. On June 14, 2008, Firetree was personally served with a “confession of judgment package.”

On July 10, 2008, Firetree filed a petition to strike and/or open judgment by confession, to stay proceedings pending resolution, and to strike impertinent and irrelevant allegations with counterclaim for damages. On July 14,2008, this court ordered DGS to show cause in five days regarding Firetree’s petition. On July 15, 2008, DGS filed its answer, as well as its motion to [244]*244dismiss counterclaims for lack of jurisdiction and new matter.

This court heard a full day of arguments on July 15, 2008, and entered an order on July 16, 2008 which: denied defendant Firetree’s petition to strike and/or open judgment by confession; dismissed as moot Firetree’s petition to strike impertinent and irrelevant allegations; denied and/or transferred to the Pennsylvania Board of Claims Firetree’s counterclaim for damages; and, granted a 30-day period in response to Firetree’s request for stay of ejectment proceedings.

On July 18, 2008, Firetree filed with the Commonwealth Court a notice of appeal of the July 16, 2008 order. On July 21, 2008, this court entered an order directing Firetree to file a concise statement of matters complained of on appeal (Rule 1925(b) statement), which Firetree later timely filed. On August 6,2008, the Commonwealth Court of Pennsylvania denied Firetree’s application for expedited stay, and allowed DGS to proceed with the scheduled ejectment on August 31, 2008. The Commonwealth Court based its ruling on Firetree’s failure to meet the four requirements for a stay, or supersedeas.

On August 11, 2008, Firetree filed its Rule 1925(b) statement.

II. ANALYSIS

This case involves a commercial lease entered into by DGS and Firetree on March 22,2004. Firetree is a nonprofit corporation that operates drug and alcohol treatment and community correction centers in several loca[245]*245tions in central and eastern Pennsylvania. Firetree entered into the lease with DGS so that Firetree could operate a drug and alcohol treatment and community correction center at the Wernersville State Hospital in Wemersville, Berks County, Pennsylvania.

In its Rule 1925(b) statement, Firetree based its appeal on three claims: the trial court denied Firetree’s petition prematurely; the confessed judgment was riddled with fatal defects and irregularities; and the confessed judgment should be opened because the condition precedent for confessing judgment has not been satisfied.

A. Whether the Trial Court Denied Firetree’s Petition Prematurely

In its Rule 1925(b) statement, Firetree argues that the July 15,2008 hearing was converted into a final hearing. This court finds neither this line of reasoning, nor the cases Firetree cited, to be persuasive. Firetree argued that because the court ruled on all of the motions Firetree had brought before the court in its July 10,2008 filings, this converted the July 15, 2008 hearing into a final ruling on the entire case. Firetree itself put the motions before this court and argued those motions at the July 15 hearing, and the court subsequently ruled on them. The court was trying to limit this prolonged action, and further delay tactics by the part of Firetree. It would have been pointless to retry the issues of the petition to strike and/ or open judgment by confession and to strike impertinent and irrelevant allegations separately, as these claims were argued before the court and resolved by evidence given at the July 15 hearing. There would have been no point in relitigating these issues separately from the stay pro[246]*246ceedings, especially when the other matters were already before this court.

In the cases Firetree relied on in its 1925(b) statement, both fact patterns related to preliminary injunctions which prejudiced the defendant, the moving party. In the instant case, however, Firetree brought its own motions before the court and argued for them at the hearing. After a full day’s hearing, this court found that the terms of the contract between Firetree and DGS were clear, and that Firetree was not entitled to the relief sought. It was within the court’s purview to dismiss Firetree’s July 10, 2008 filings at the hearing on July 15.

B. Whether the Confessed Judgment Was Riddled With Fatal Defects and Irregularities

In its Rule 1925(b) statement, Firetree argues that there were numerous defects with the confessed judgment because DGS allegedly didn’t provide Firetree with: proper notice of Firetree’s rights as mandated by Pa.R.C.P. 2973.3(a); a copy of lease document attached to the complaint attested to by agreement of the parties or by the prothonotary as mandated by Berks County Local Rule 2951 (a); all of the allegations mandated by Pa.R.C.P. 2971(a)(1) in the complaint; and the order of judgment executed by the prothonotary.

Thus, Firetree has claimed it did not receive various necessary portions of the confessed judgment, and other necessary documents. After hearing a full day of testimony on July 15,2008, the court is satisfied that Firetree received these documents. The court believes DGS to [247]*247have been compliant, and if not, any noncompliance was de minimis.

Firetree argued it did not receive the two pages of the confessed judgment. All other defendants, as well as the prothonotary, received those pages. In this “he said, she said” argument, where one party says it did not receive a document, it was this court’s judgment, based on the totality of the circumstances, that the full document was sent. All evidence points to the likelihood Firetree received these documents.

C. Whether the Confessed Judgment Should Be Opened Because the Condition Precedent for Confessing Judgment Has Not Been Satisfied

As explained above, the condition precedent has been satisfied, and as this court held in its July 16,2008 order, the confessed judgment should not be opened. The language of the lease clearly lays out the terms for terminating the lease. The lease between Firetree and DGS states that if tenant Firetree did not vacate the property within 90 days of notice of termination of the lease, there would be a confessed judgment against Firetree. This court previously found, and still believes, that Firetree’s arguments that these provisions should not be enforced are without merit.

Under the term of lease section of the lease, paragraph (D)(1), the lease was to be effective for a term of four years after the March 22,2004 date of execution. Under that same paragraph, the lessee was to be provided the “option of two five-year renewal periods

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Bluebook (online)
6 Pa. D. & C.5th 242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/department-of-general-services-v-firetree-ltd-pactcomplberks-2008.